In Texas, the reason for termination of employment – whether it was for cause, without cause, a layoff, a reduction in force, or any other reason – does not affect the enforceability of a non-compete agreement. Therefore, employers should not assume that non-competition agreements are no longer enforceable and must carefully approach enforcement of such agreements against departing employees as well as the hiring of new employees who may be still bound by non-competition agreements with their former employers.
In March 2016, the Office of Economic Policy of the U.S. Department of the Treasury issued a report titled “Non-Compete Contracts: Economic Effects and Policy Implications.”
Turns out Oklahoma and California have much more in common than one would imagine – they both prohibit non-compete agreements. The Fifth Circuit Court of