Landscape changing for noncompete agreements in Texas — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Landscape changing for noncompete agreements in Texas

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in Employment Law,Hiring,Human Resources,Leaders & Managers,Management Training

A year and a half ago, the Texas Supreme Court took a step toward demystifying noncompete agreements when it decided Alex Sheshunoff Management Services v. Kenneth Johnson, et al. That 2006 case clarified whether employers may require new and existing employees to sign noncompete agreements without changing their at- will status.

The court concluded they can—as long as the employer provides proper consideration in return.

Some basics: A contract is enforceable only when each party gives something to the other. In the case of noncompetes, the employer gives the employee information necessary to perform the job in exchange for a promise not to use that information against the employer.

Promises, promises

The unanswered question prior to Sheshunoff was whether the mere promise to provide employees with confidential information was sufficient consideration for a noncompete to be enforceable. The conventional think...(register to read more)

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