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Is a Non-Compete Enforceable in Texas? What Employers and Employees Need to Know

If you’re starting a new job or leaving one, you may be asked to sign—or already bound by—a non-compete agreement. These contracts are designed to limit where and how you can work after leaving your employer. But are non-competes actually enforceable in Texas?

The short answer: Yes—but only under specific legal conditions.

Texas law generally favors free competition and employee mobility. However, it also allows businesses to protect trade secrets, customer relationships, and confidential information—if the non-compete is reasonable and properly drafted.

In this blog, The Lange Firm breaks down the enforceability of non-compete agreements in Texas, what factors courts look at, and how both employees and employers can protect themselves.

What Is a Non-Compete Agreement?

A non-compete agreement is a contract in which an employee agrees not to work for a competitor or start a competing business for a certain period of time after leaving a company.

It usually restricts:

• Time (e.g., 6–24 months)
  
  
• Geography (e.g., within a city, state, or region)
  
  
• Scope of work (e.g., sales, marketing, product development in a specific industry)
  
  

These agreements are typically signed at the beginning of employment or as part of a promotion or severance package.

Are Non-Competes Enforceable in Texas?

Yes—but only if they meet the requirements of Texas Business and Commerce Code § 15.50.

To be enforceable, a non-compete must:

1. Be ancillary to an otherwise enforceable agreement (such as an employment agreement or confidentiality agreement)
   
   
2. Contain reasonable limitations in terms of time, geography, and scope
   
   
3. Protect a legitimate business interest, such as trade secrets, client lists, or goodwill
   
   

💡 If any of these elements are missing or overly broad, a Texas court may void or modify the agreement.

What Makes a Non-Compete “Reasonable” in Texas?

Texas courts assess the reasonableness of a non-compete based on:

✅ Time

• Generally, non-competes lasting 6 months to 2 years are considered reasonable.
  
  
• Longer restrictions must be justified by high-level access or executive roles.
  
  

✅ Geography

• Restrictions should be limited to the area where the employee worked or where the employer has business interests.
  
  
• Nationwide or global restrictions are usually too broad—unless clearly justified.
  
  

✅ Scope of Activity

• The restriction must only cover the type of work the employee performed.
  
  
• A non-compete that bans you from any role in an entire industry is likely unenforceable.
  
  

What Is “Ancillary to an Enforceable Agreement”?

A non-compete must be tied to a legitimate agreement—like:

• A confidentiality agreement protecting trade secrets
  
  
• A nondisclosure clause in an employment contract
  
  
• A severance package that includes consideration (money or benefits) in exchange for the non-compete
  
  

If a non-compete stands alone, without any real benefit or exchange, Texas courts will likely throw it out.

Can Employers Enforce Non-Competes in Texas?

Yes—but they must:

• Clearly define what’s being restricted
  
  
• Show that the restriction protects a legitimate business interest
  
  
• Be prepared for a court to “blue-pencil” (modify) unreasonable terms
  
  

If an employee breaches a valid non-compete, employers can seek:

• Injunctions (to stop the employee from working for a competitor)
  
  
• Damages for lost clients or trade secrets
  
  
• Attorney’s fees in some cases
  
  

At The Lange Firm, we help Texas employers draft and enforce non-competes that hold up in court.

Can Employees Fight a Non-Compete in Texas?

Absolutely. Employees may be able to challenge a non-compete if:

• It’s overly broad in time, geography, or scope
  
  
• It wasn’t supported by consideration (e.g., you received nothing in return)
  
  
• You were fired without cause
  
  
• You never signed it voluntarily
  
  
• It unfairly restricts your ability to earn a living
  
  

Courts are often sympathetic to employees—especially in cases where the restriction harms the worker’s ability to support themselves.

📞 If you’re being threatened with legal action over a non-compete, contact The Lange Firm immediately for a strategic defense.

What About Non-Competes in Severance Agreements?

Many severance packages in Texas include non-compete clauses in exchange for:

• Severance pay
  
  
• Extended health benefits
  
  
• Outplacement services
  
  

Before signing, it’s critical to:

• Understand the scope of the restrictions
  
  
• Negotiate the terms (e.g., duration, geography)
  
  
• Ensure the payout justifies the limitations
  
  

The Lange Firm regularly reviews severance agreements and helps professionals negotiate better non-compete terms—or eliminate them entirely.

What Happens If You Violate a Non-Compete in Texas?

If a valid non-compete is violated, your former employer can take legal action, including:

• Sending a cease-and-desist letter
  
  
• Requesting a temporary restraining order
  
  
• Filing a lawsuit for damages
  
  
• Naming your new employer as a co-defendant
  
  

This is why it’s critical to get legal advice before accepting a new job if you’re under a non-compete agreement.

How The Lange Firm Can Help

At The Lange Firm, we represent both employers and employees across Texas in non-compete matters.

For Employees:

• Review and explain your agreement
  
  
• Negotiate reduced terms or buyouts
  
  
• Defend against enforcement actions
  
  
• Guide you through job transitions without breaching your contract
  
  

For Employers:

• Draft enforceable, reasonable non-competes
  
  
• Protect trade secrets and client relationships
  
  
• Enforce agreements through cease-and-desist letters or litigation
  
  
• Defend against wrongful use of confidential information
  
  

📞 Contact The Lange Firm today to understand your rights and obligations related to non-compete agreements in Texas.

Final Thoughts

So, is a non-compete enforceable in Texas?
✅ Yes—but only if it’s properly drafted, reasonable, and tied to a legitimate business interest.

Whether you’re an employee facing restrictions or an employer trying to protect your business, The Lange Firm can help you navigate Texas non-compete law with clarity and confidence.