While it can be tempting to draft extremely broad noncompetition agreements in an effort to protect the company, in-house counsel must take a nuanced approach in this area of the law.
Counseling the executive team and midlevel management about technical legal issues in noncompete enforcement can be challenging. Texas prohibits restraints of trade, but it allows reasonable covenants not to compete in at-will employment. Texas Business & Commerce Code §15.50 sets enforceability criteria. The case law continues to evolve, and a case pending now at the Texas Supreme Court could provide further clarity.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
