Executive employment contracts and severance agreements often include a forfeiture clause. These so-called "bad boy" clauses require the employee to forfeit his right to compensation if he engages in activity deemed detrimental to the company, such as working for a competitor. A case pending before the Texas Supreme Court could…
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This week, the U.S. Supreme Court decided a case that involves two hot topics in employment law: arbitration agreements and noncompetes. In Nitro-Lift Technologies, LLC v. Howard, two employees who worked in Oklahoma signed a noncompete with their employer at the time, Nitro-Lift. The noncompete included an arbitration clause. The…
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In Marsh USA Inc., et al. v. Cook, --- S.W.3d ---, 2011 WL 2517019 (Tex. June 24, 2011) (not yet released for publication), the Texas Supreme Court held that providing stock options to an employee is sufficient consideration to support a noncompete. According to the majority opinion, because the stock…
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