Texas Noncompete Agreements Enforceable?: Sheshunoff Didn't Change Everything
It's commonly believed--and rightly so--that the Texas Supreme Court's recent decision in the Sheshunoff case makes non-compete agreements relatively more enforceable. However, let's keep in mind a couple of things that didn't change [even if these are obvious points].
Number one, even after Sheshunoff, if the consideration given for the non-compete agreement is confidential information, the employer must still promise to give it. Sheshunoff rejects the notion that the confidential information must be provided at the moment the agreement is signed. However, in that case, the employer did promise to convey the information. Conversely, if the agreement in that case merely had the employee "acknowledge" that he might receive the information, the non-compete agreement likely would not have been enforced. Thus, this element of Texas non-compete law has not changed.
On a related note, the confidential information must actually be confidential. That's an obvious point, perhaps, but the bigger point is this: the holding in Sheshunoff was not, "Non-compete agreements are now enforceable in Texas." It was a lot more nuanced than that, and there are still many other requirements that must be met.
