Drennen v. Exxon Mobil Corp

Under Texas law, a restraint on competition without reasonable time and geographical limitations is unenforceable. Although New York generally disfavors an unreasonable non-competition covenant, there is an exception under the employee-choice doctrine. A recent Texas appellate court panel, applying Texas law, reversed a lower court order declaring valid under New York law an employment contract provision imposing a substantial penalty

Continue Reading Texas Appellate Court Voids, As Contrary to Fundamental Texas Law, Incentive Compensation Contract Imposing A Substantial Penalty For Post-Employment Competition With The Ex-Employer