THE DEVELOPMENT OF THE TEXAS NON-COMPETE: A TORTURED HISTORY

     A recent article
in the New York Times reported that the state of Texas had gives out more
incentives than any other state, around $19 billion a year, to lure the most
dynamic businesses in the United States to the Lone Star State. [i] The governor of Texas stated that
“Facebook, eBay, Apple – all of those within the last two years have
announced major expansions in Texas… [t]hey’re coming because it is given,
it is covenant, in the boardrooms across America, that our tax structure,
regulatory climate and legal environment are very positive to those
businesses.” [ii] Although Texas offers tax incentives and a favorable business climate, high
tech businesses may have, in the past, understandably been reluctant to
relocate to Texas because of the prior anemic protection granted to businesses
in the arena of non-competes. These
businesses, one assumes, have no interest in training their best and brightest
today, only to have them become competitors tomorrow. READ MORE…

[i]Louise
Story,  Lines Blur as Texas Gives Industries a Bonanza, New York Times
(December 3, 2012)
[ii]
Id.  at p. A18.
Call Today:  (713) 526-2222