Before proceeding, please review the  legal disclaimer.

Non-Compete Clause Texas: Are They Enforceable and What Are Your Rights?

In today’s competitive business world, many Texas employees are asked to sign non-compete clauses—often as a condition of getting hired, promoted, or even severed from their job. But these agreements can significantly limit your career options and raise serious questions about your legal rights.

So, what’s the deal with a non-compete clause in Texas?
Are they enforceable? How restrictive can they be? And can you challenge one if it’s unfair?

At The Lange Firm, we help Texas employees and employers understand, negotiate, enforce, or fight non-compete agreements. In this blog, we’ll break down everything you need to know about non-compete clauses under Texas law.

Table of Contents

• What Is a Non-Compete Clause?
  
  
• Are Non-Compete Clauses Legal in Texas?
  
  
• Texas Requirements for an Enforceable Non-Compete
  
  
• What Makes a Non-Compete Unenforceable in Texas?
  
  
• Industries Commonly Affected by Non-Compete Agreements
  
  
• Can You Be Forced to Sign a Non-Compete in Texas?
  
  
• How to Get Out of a Non-Compete Clause in Texas
  
  
• Non-Compete Clauses and Severance Agreements
  
  
• What Happens If You Violate a Non-Compete?
  
  
• How The Lange Firm Can Help
  
  
• Final Thoughts
  
  
• Related Blogs for Further Reading
  
  

What Is a Non-Compete Clause?

A non-compete clause (or covenant not to compete) is a contractual provision that prohibits an employee from:

• Working for a competitor
  
  
• Starting a competing business
  
  
• Soliciting the company’s clients, customers, or employees
  
  

These restrictions usually apply:

• During employment
  
  
• For a set period after leaving
  
  
• Within a defined geographic area
  
  

In Texas, these clauses are typically found in:

• Employment agreements
  
  
• Confidentiality and intellectual property agreements
  
  
• Severance or termination agreements
  
  
• Partnership and buy-sell contracts
  
  

Are Non-Compete Clauses Legal in Texas?

Yes—but only if they meet certain conditions.

Texas courts disfavor non-compete clauses because they limit a person’s ability to earn a living. However, under the Texas Business and Commerce Code § 15.50, a non-compete clause is enforceable if it is:

• Part of an otherwise enforceable agreement
  
  
• Reasonable in scope, geography, and duration
  
  
• Necessary to protect legitimate business interests (like trade secrets or client relationships)
  
  

✅ If it meets these tests, a non-compete clause may be enforced in court.

Texas Requirements for an Enforceable Non-Compete

For a non-compete clause to be valid in Texas, it must meet two primary legal tests:

1. It Must Be Ancillary to an Enforceable Agreement

That means it must be part of an agreement that includes:

• A job offer
  
  
• Access to confidential information
  
  
• Training or trade secrets
  
  
• Client introductions or goodwill
  
  

2. It Must Be Reasonable in:

• Scope of activity restricted – Can’t bar all types of work
  
  
• Geographic area – Must match the employer’s actual business area
  
  
• Duration – Typically 6 months to 2 years is acceptable
  
  

The Lange Firm helps clients review or draft enforceable non-competes that stand up in court—or defend against those that don’t.

What Makes a Non-Compete Unenforceable in Texas?

A non-compete clause is likely unenforceable if it:

• Is not tied to a valid agreement
  
  
• Restricts too broad a geographic area
  
  
• Lasts too long after termination
  
  
• Restricts unrelated job functions
  
  
• Protects non-legitimate business interests (like general competition)
  
  

📌 Example: A clause banning a former receptionist from working anywhere in Texas for five years is likely overbroad and unenforceable.

Texas courts can refuse to enforce the entire clause, or reform (rewrite) it to make it reasonable.

Industries Commonly Affected by Non-Compete Agreements

Some industries where non-compete clauses are especially common in Texas include:

• Healthcare (doctors, dentists, medical staff)
  
  
• Technology and software development
  
  
• Sales and marketing
  
  
• Finance and banking
  
  
• Engineering and architecture
  
  
• Professional services (law, accounting, consulting)
  
  

Texas has special rules for physicians, requiring certain carve-outs and patient protections.

Can You Be Forced to Sign a Non-Compete in Texas?

You can’t be forced to sign—but an employer may:

• Rescind a job offer if you refuse
  
  
• Terminate employment for not signing (in at-will situations)
  
  

Once signed, it’s a binding contract—unless it violates the law.

Pro tip: Don’t sign a non-compete without legal review. The Lange Firm can help you negotiate better terms before signing.

How to Get Out of a Non-Compete Clause in Texas

You may be able to invalidate or limit a non-compete if:

• The clause is too broad or unreasonable
  
  
• The employer breached their end of the agreement
  
  
• You were terminated without cause
  
  
• You never received confidential information
  
  
• You work in a new role not covered by the agreement
  
  

A court may:

• Refuse to enforce the clause
  
  
• Order a temporary injunction
  
  
• Reform the contract to narrower terms
  
  

Non-Compete Clauses and Severance Agreements

When you’re laid off or fired, you may be offered a severance agreement that includes a non-compete clause. Before signing:

• Read carefully for non-compete, non-solicitation, and non-disparagement language
  
  
• Understand what you’re giving up in exchange for payment
  
  
• Consider negotiating the geographic limits or time period
  
  

📞 Contact The Lange Firm to review your severance package and protect your rights before you sign.

What Happens If You Violate a Non-Compete?

If your former employer believes you’ve breached a non-compete, they may:

• Send a cease-and-desist letter
  
  
• File for a temporary restraining order (TRO)
  
  
• Sue you for breach of contract or damages
  
  

Defenses may include:

• The clause is too broad
  
  
• You weren’t given adequate consideration
  
  
• Your work doesn’t actually compete
  
  
• The employer has no legitimate interest to protect
  
  

The Lange Firm can help defend against aggressive enforcement and protect your new employment.

How The Lange Firm Can Help

At The Lange Firm, we represent:

✅ Employees

• Review and explain non-compete agreements
  
  
• Negotiate terms before signing
  
  
• Defend against unfair enforcement
  
  
• Protect your job mobility
  
  

✅ Employers

• Draft enforceable non-compete clauses
  
  
• Protect trade secrets and client relationships
  
  
• Enforce valid agreements in court
  
  
• Avoid overreach and liability
  
  

Whether you’re entering, exiting, or fighting a non-compete, we offer the legal guidance you need to move forward.

📞 Schedule a consultation today to protect your career and your rights under Texas law.

Final Thoughts

So, what’s the bottom line on a non-compete clause in Texas?

✅ These clauses are enforceable—but only if they’re fair, limited, and tied to a legitimate business interest.

Whether you’re being asked to sign, trying to leave a job, or dealing with legal threats, The Lange Firm is here to help you navigate Texas non-compete law with clarity and confidence.