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Shedding Light on Non-Competes in Texas

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An article in the New York Times reported the State of Texas hands 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.

Governor Perry stated that “Facebook, eBay, Apple – all of those within the last two years have announced major expansion in Texas . . . they’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.”

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 lack of protection granted to businesses in the arena of non-competes. Most businesses, have no interest in training their best and brightest today, only to have them become competitors tomorrow.

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