While it can be tempting to draft extremely broad noncompetition agreements in an effort to protect the company, in-house counsel must take a nuanced approach in this area of the law.
Counseling the executive team and midlevel management about technical legal issues in noncompete enforcement can be challenging. Texas prohibits restraints of trade, but it allows reasonable covenants not to compete in at-will employment. Texas Business & Commerce Code §15.50 sets enforceability criteria. The case law continues to evolve, and a case pending now at the Texas Supreme Court could provide further clarity.
