Texas Supreme Court Allows Stock Options as Consideration for Non-Compete Agreements
A recent decision by the Texas Supreme Court makes it easier for employers to enforce restrictive covenants in Texas. Employers often seek to obtain these types of contracts with key employees to prevent them from going to work for competitors or to leave to start competing businesses. The enforceability of such contracts is typically governed by state law, resulting in a patchwork of differing standards across the United States, with some states favoring enforcement, and others precluding such agreements altogether. Please read Seyfarth Shaw's One Minute Memo on the new case.
