Employment Law

Non-Compete Agreements in Texas

Texas enforces non-compete agreements if they are reasonable in scope, geography, and duration. Learn when these agreements are valid and how to challenge them.

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Non-Compete Agreements in Texas

Under Texas Business and Commerce Code §15.50, a non-compete agreement is enforceable if it is ancillary to an otherwise enforceable agreement and contains reasonable limitations.

Reasonableness Factors

  • Geographic scope — must be tied to where the employer does business
  • Duration — typically 1–2 years is viewed as reasonable
  • Scope of activity — must protect a legitimate business interest

Courts can reform (blue-pencil) an overbroad non-compete rather than voiding it entirely.