LITIGATION ALERT: THE NEW(EST) RULE FOR NON-COMPETE AGREEMENTS IN TEXAS

For employers that use stock or stock options as consideration for non-compete or non-solicit agreements, a little clarity has been provided in Texas.  In Marsh USA, Inc. v. Cook, the newest Texas Supreme Court opinion to address covenants not to compete in Texas, the Court abrogated the landmark non-compete opinion Light v. Centel Cellular Co. of Texas thereby significantly modifying the test that courts use to determine whether the covenant not to compete is an "ancillary part of" an otherwise enforceable agreement.