Use this button to switch between dark and light mode.

Experience a New Era in Legal Research with Free Access to Lexis+

Rieves v. Buc-ee's Ltd.

Rieves v. Buc-ee's Ltd.

Court of Appeals of Texas, Fourteenth District, Houston

October 12, 2017, Opinion Filed

NO. 14-15-01061-CV

Opinion

 [*846]  This summary judgment appeal presents the question whether provisions in an employment agreement that require an employee to repay substantial parts of her compensation upon termination of employment are unlawful restraints of trade. Because the provisions lack reasonable limits and impose a substantial penalty on the exercise of an at-will employee's right to quit her job, we hold that they are unenforceable. We therefore reverse the trial court's judgment and (1) render judgment that appellee Buc-ee's Ltd. take nothing on its claims against appellant Kelley Rieves; (2) render judgment declaring the "Additional Compensation" and "Retention Pay" provisions in Rieves's employment contracts to be unenforceable restraints of trade; and (3) remand the question of Rieves's entitlement to attorneys' fees to the trial court for further proceedings.

 [*847]  Background

Buc-ee's operates a well-known chain of convenience stores in Texas. Rieves, a graduate of Texas Tech University with a degree in restaurant and hotel management, was working [**2]  for TGI Fridays restaurants when she began to explore a potential new job as a Buc-ee's assistant manager. During this process, Rieves met with Don Wasek, Buc-ee's president. Wasek asked Rieves what payment she would need to take a job with Buc-ee's. Rieves responded that she would need to be paid at least the salary she was earning at TGI Fridays, which was approximately $55,000 per year. Wasek agreed to that amount and told Rieves it would be split between an hourly pay rate and a flat monthly amount. Wasek then told Rieves that she could pick, within specified limitations, the percentage split between the two. The split requirement was not negotiable. Rieves picked a 70-30 split. Rieves accepted an assistant manager position at one of Buc-ee's convenience stores.

Rieves signed an employment agreement with an effective date of August 25, 2009 (the 2009 Agreement). The 2009 Agreement provided that Rieves would be an at-will employee and that she would be paid an hourly wage of $14 plus a "fixed monthly bonus of $1,528.67." The monthly bonus provision is found in Article 3, entitled "Additional Compensation." This article states, in pertinent part:

Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.

532 S.W.3d 845 *; 2017 Tex. App. LEXIS 9580 **; 2017 WL 4557796

KELLEY RIEVES, Appellant v. BUC-EE'S LTD., Appellee

Prior History:  [**1] On Appeal from the 23rd District Court, Brazoria County, Texas. Trial Court Cause No. 73332.

CORE TERMS

provisions, additional compensation, Retention, covenant, unenforceable, compete, attorney's fees, restraint of trade, at-will, termination, forfeiture provision, challenging, limitations, summary judgment motion, repay, summary judgment, trial court, counterclaim, damages, monthly, quit, former employer, non-compete, preempted, mobility, modify

Civil Procedure, Appeals, Summary Judgment Review, Standards of Review, Summary Judgment, Evidentiary Considerations, Absence of Essential Element, Burdens of Proof, Movant Persuasion & Proof, Motions for Summary Judgment, Cross Motions, Standards of Review, Questions of Fact & Law, Labor & Employment Law, Conditions & Terms, Trade Secrets & Unfair Competition, Noncompetition & Nondisclosure Agreements, Trade Secrets Law, Employee Duties & Obligations, Right to Compete, Covenants Not to Compete, De Novo Review, At Will Employment, Exceptions, Express Contracts, Antitrust & Trade Law, Trade Practices & Unfair Competition, State Regulation, Scope, Employment Contracts, Compensation & Benefits