A year and a half ago, the Texas Supreme Court took a step toward demystifying noncompete agreements when it decided Alex Sheshunoff
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.
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)