Non-Compete Agreement Made by Existing Employee Enforceable in Texas

The Texas Supreme Court has held that a covenant not to compete signed by a current employee may be enforceable. Marsh USA v. Cook, No. 09-0558 (Tex. June 24, 2011). In this case, the Court found that the employer’s provision of stock options to the employee,  in exchange for signing the agreement, was sufficient consideration and therefore enforceable under the Texas Covenants Not to Compete Act.