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.