The Texas Supreme Court just made it easier for employers to enforce noncompete covenants against ex-employees.
In Marsh USA Inc. and Marsh & McLennan Cos. Inc. v. Rex Cook, a divided high court reversed a 5th Court of Appeals ruling that a noncompete covenant was unenforceable. Siding with the former employer, the high court held that stock options are “reasonably related to the company’s interest in protecting its goodwill” and thus qualify as consideration for an enforceable noncompete covenant.
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