Texas Supreme Court Revises Non-Compete Stance

Law360, New York (October 24, 2006, 12:00 AM EDT) -- The Texas Supreme Court has issued an opinion clarifying its stance on the enforceability of non-compete covenants in the context of at-will employment agreements, and giving employers more latitude in such agreements.

The Texas Supreme Court’s opinion in Alex Sheshunoff Management Services LP v. Kenneth Johnson and Strunk & Associates LP marks a departure from its 1994 ruling in Light v. Centel Cellular Co.

At issue is the question of whether or not a non-compete agreement entered into by an at-will employee is binding, if the...
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