Texas Law on Covenants Not to Compete has Changed

As an initial matter, we would like to apologize for our absence for the last month and a half. From time to time the actual practice of law interferes with the blogging. We’ve been extremely busy for the last month or so, which is good, but which also prevented us from blogging. For a variety of reasons, however, things are more or less back to normal now.

Which is a good thing, because this morning the Texas Supreme Court released two opinions, one of which apparently changes Texas law with respect to the enforceability of covenants not to compete in the at-will employment context. The opinion discusses the history of Texas jurisprudence on the subject, as well as the legislative history of the Covenants Not to Compete Act. Obviously, it will be required reading for anyone who practices in the employment or commercial litigation areas.

Alex Sheshunoff Management Services, L.P. v. Kenneth Johnson and Strunk & Associates, L.P., ___ S.W.3d ___ (Tex. 2006) (Cause No. 03-1050).

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