June 24, 2011 the Texas Supreme Court changed the landscape for employee non-competes and non-solicit agreements (Marsh USA, Inc. and Marsh & McLennan Companies, Inc. v. Cook). Under these new changes, the Texas Supreme Court found that a non-compete covenant contained in a stock option purchase plan to be enforceable - an outcome that was previously contrary to Texas law. Prior to Marsh, most lawyers believed that financial incentives or money would never support a non-compete.
Non-competes continue to grow in popularity as unemployment and increased competition for the best employees become widespread.
If your organization uses a non-compete; please take the time to have an attorney review it. Ensure that your restrictions are reasonable. Courts typically disfavor agreements which restrict an individuals right to make a living.
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