Texas Noncompete Agreements

The answer is probably no.   There has been a lot of litigation in Texas over the form of consideration that an employer has to give an employee to make an employee's noncompete valid.   To support a noncompete agreement In Texas, there must be a related enforceable agreement giving some consideration to the employee, and the well-established rule is that there must be a logical connection between the form of consideration given in the separate agreement and a legitimate interest of the employer to be protected by the noncompete.  For example, consideration in the form of confidential information or specialized training given to an employee can support a noncompete, as the employer has a legitimate interest in protecting its confidential information and specialized workforce.  If the employee leaves to compete, the employee will likely use that confidential information or specialized training against the employer.  The Texas Supreme Court has also held that a stock option agreement given to a key employee can support a noncompete because the agreement to grant equity ownership links the interests of the employee with the employer's long-term business interests in its goodwill.  The Court looked for a "reasonable relationship" between the consideration given to the employee under the related agreement and the protectable interests of the employer, concluding that the agreement to grant equity interests was reasonably related to the employer's protectible interest in its goodwill.  The Court noted that by owning stock, the employee became an owner of the business, and owners are interested in protecting the goodwill of the business.  It is not clear how far the Texas courts will take this "reasonable relationship" test, but it is doubtful that the test will extend to consideration in the form of cash bonuses or similar cash payments.