The Evolving Status of Non-Compete Agreements

Abstract

Most states allow employers to restrict their employees from competing with them in the future. In Marsh v. Cook, Texas became the latest defector from a dwindling list of places where employees can transfer jobs without moving or changing careers, and without getting sued. Texas courts had steadfastly resisted non-compete agreements for decades, and its shift is the latest example in a national trend toward accepting more restrictions on competition. However, so long as dissenters remain, talented professionals will move to the states that do not permit broad restrictions. This policy outcome undermines why non-competes are accepted in the first place: promoting the state’s economy.