Quick Facts — Noncompete Agreement Lawyers (Texas)

Is a Non-Compete Agreement Enforceable in Texas?

In Texas, non-compete agreements that restrict employees from competing against former employers in similar industries are permitted and can be legally enforced. For a non-compete agreement to be legally enforceable, it must meet certain requirements laid out in Texas state laws.

Some of these requirements include:

  • The non-compete must be signed at the time of employment and be ancillary or part of an offer for employment.
  • There must be limitations on the duration of the agreement and the geographical area the agreement covers.
  • There must be limitations on the scope of activity that the agreement restricts.
  • Physicians who sign non-compete agreements cannot be denied access to a list of previous patients and medical records.
  • Attorneys cannot participate in non-compete agreements.

As long as these conditions are met, most non-compete agreements will be enforced in Texas.

How Long Does a Texas Non-Compete Agreement Last?

The Texas Court of Appeals has regularly enforced non-compete agreements that last between two and five years. This time frame has been ruled reasonable in the eyes of the court.

When looking at the duration of a non-compete agreement, courts will also consider the geographic boundary. The geographic area that is restricted under the non-compete agreement must be an area where the employee or worked or where the employer conducts business.

How Do You Get Around a Non-Compete Agreement in Texas?

Even though non-compete agreements are enforceable in Texas, there are a few ways to potentially get around them.

Here are some of the ways:

  1. Challenge the agreement's validity. You may be able to challenge the validity of the non-compete agreement if it is overly restrictive in terms of time, geographic scope, or the type of work it covers. The agreement must be reasonable and not impose undue hardship on the employee.
  2. Negotiate with your employer. If the non-compete agreement is overly restrictive, you can try negotiating with your employer to have it modified or narrowed.
  3. Look for a loophole. Sometimes non-compete agreements contain loopholes or exceptions that you can exploit. For example, the agreement may not apply to certain geographical areas or job functions.
  4. Wait it out. If the non-compete agreement has a time limit, you can simply wait until it expires before entering into competition with your former employer.
  5. Ask the court to modify. Texas allows courts to “blue pencil” or modify overly broad or restrictive non-compete agreements. If a term or restraint is more than necessary to protect the employer’s interests, you can request that the term be reasonably modified.

What Happens If You Break a Non-Compete Agreement in Texas?

If you violate a legally enforceable non-compete agreement, you could face serious repercussions. Once a non-compete is violated, your former employer can petition the court for an injunction to order you to stop the activity that violates the contract. From there, your former employer could file a lawsuit against you for breach of contract in an attempt to recover financial damages.

Texas allows punitive damages to be awarded in breach of contract cases. This means that the breaching party could be fined for their wrongdoing on top of any damages the court has already awarded the non-breaching party. In past cases, Texas courts have awarded employers over $100,000 in punitive damages following a breach of a non-compete agreement.

What Voids a Texas Non-Compete Agreement?

A non-compete agreement in Texas will be void if it lacks adequate consideration. Continued employment is not adequate consideration in Texas so when a new employee signs a non-compete, it must be supported by independent valuable consideration like a new position, raise in pay, or additional benefits.

Frequently Asked Questions

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Mike R. on ContractsCounsel
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Mike R.

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Practicing attorney and former law professor with 28 year's experience, including class actions and appeal. Primary practice areas: commercial litigation, contracts, business counseling, formation, collections, asset protection, employment, and government regulation. Extensive law teaching experience, including legal writing, legal research, contract drafting, civil procedure, contracts, conflict of laws, and business organizations. Attorney Rusco heads Rusco Law. Rusco Law attorneys practice in California, New York, Texas, Colorado, and Wisconsin. For more information, please visit www.ruscolaw.com. For more information about business counseling services, please visit https://www.ruscolaw.com/practice-areas-and-services-offered. Rusco Law combines big-firm expertise with small-firm personal attention to give a limited set of clients unparalleled representation and service. We provide: • Complete litigation services, from pre-filing demands through Supreme Court appeals. Extensive experience in commercial, employment, tribal, and personal injury matters. • Sophisticated business counseling with an emphasis on start ups, including formation, risk management, internal governance, employment policy, regulatory advocacy, and trademark/trade secret/patent protection. • Detailed contract negotiation, review, and compliance monitoring, including major construction and service agreements. • Full-spectrum legal support for principals and their families, including passionate injury representation, including childcare and playground accidents.

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I am a seasoned real estate attorney with over 20 years of experience advising clients across all facets of real estate development, leasing, and construction. Known for a practical and solution-oriented approach, I have guided developers, property owners, and investors through complex transactions, contract negotiations, and regulatory challenges with efficiency and clarity. I also worked in house for the largest developer for Target retail centers in North Texas.

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Since starting as a Wall Street lawyer in 2004, I have led and closed 100's of transactions ranging from small business acquisitions to multi-billion-dollar domestic and international deals as well as private capital raises large and small. With over 20 years of experience in corporate, M&A, and securities law, I provide strategic legal counsel tailored to high-stakes business initiatives as well as critical advice to startups and companies raising capital. 🔴CORE PRACTICE AREAS: Capital Raising: Structuring and preparing Private Placement Memorandums (PPMs), SAFE Notes, Convertible Notes, Promissory Notes, Bridge Notes, Warrants, Reg A, Reg CF, Reg D, and Reg S offerings. Business Transactions: Representing buyers and sellers in domestic and cross-border M&A. Startups and Growth-Stage Businesses: Formation, structuring, scaling, and preparing businesses for investment or acquisition. Exit Planning: Legal strategy and execution for business sales and investor exits. Strategic Advisory: Advising boards of directors, C-suite executives and founders on overall business strategy and business acquisition/disposition matters. 🔴LEGAL EXPERTISE: Structuring and negotiating complex M&A and capital markets transactions. Drafting core transactional documents: purchase agreements, subscription agreements, operating/shareholder agreements, and corporate governance materials. Advising on securities compliance, including Reg A, Reg D, and Reg S offerings, Blue Sky compliance, and SEC filings. Fund formation and structured finance: extensive experience with CDOs, CMBS/RMBS, and Investment Company Act issues. Partnering with senior management and boards to align legal strategies with business objectives. Collaborating with international counsel and multidisciplinary teams on multijurisdictional deals. 🔴TRACK RECORD: Former Senior Associate Attorney at international Corporate M&A powerhouse Clifford Chance and top Corporate & Structured Finance law firm Thacher Proffitt & Wood both in Manhattan (New York City), where I represented investment banks, public and private companies, private equity sponsors, startups and hedge funds on strategic transactions. Closed and supported multi-billion-dollar deals across industries and jurisdictions. Delivered practical legal solutions to drive successful outcomes for clients ranging from startups to global financial institutions. I am licensed to practice law in New York and Texas. Corporate & Securities Attorney | Strategic Deal Advisor | M&A and Capital Raising Specialist

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Maricela G.

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I’m a Texas-based attorney with extensive experience in business law, real estate transactions, estate planning, probate, and immigration. I focus on providing clear, efficient, and client-focused legal solutions. Whether you're looking to draft, review, or negotiate contracts, I bring a practical mindset and attention to detail to protect your interests and help you move forward with confidence.

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David M. Abner is a practicing attorney with over 30 years of experience representing clients ranging from startups to Fortune 500 companies in California and Texas. Mr. Abner is currently based in Los Angeles, California, and his practice focuses on negotiating the purchase and sale of businesses; negotiating equity and debt financing agreements; drafting and negotiating revisions to a variety of commercial agreements; and investigating and responding to law enforcement and regulatory compliance investigations. Additionally, Mr. Abner has considerable experience dealing with litigation involving ownership and valuation of privately held companies. He has tried nearly a dozen cases in private practice, including cases involving breach of contract, products liability, fraud, and officer and director liability. As in-house counsel for Ashland Inc., Mr. Abner worked with business leaders daily to assess, manage and prevent a variety of legal risks that threatened the viability and profitability of products, services and customer relationships. His efforts produced results that included settling a $700M anti-trust class action lawsuit for less than $7M; assisting in closing the sale of the company’s joint venture interests in an oil and gas subsidiary; assessing and quantifying the liabilities associated with the acquisition of other businesses; and supervising Ashland’s responses to DOJ, FBI and EPA investigations. Mr. Abner has been licensed to practice law in Texas since 1993, and in California since 2012. Mr. Abner obtained his Juris Doctorate from the Dedman School of Law at Southern Methodist University in 1993, and a Bachelor of Arts degree from the University of South Carolina in 1990.

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Lawyer Reviews for Texas Noncompete Agreement Projects

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Employment

Noncompete Agreement

Missouri

Asked on Dec 12, 2023

Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?

I am really curious when employment contract can become criminal. Is it criminal to ask you coworker to come work with you, considering if you are accused of fraud for breaching non compete non solicit?

Matthew S.

Answered Dec 16, 2023

No, this at worst is a civil matter and not a criminal matter. F

Read 1 attorney answer>

Contracts

Noncompete Agreement

Florida

Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

Read 1 attorney answer>

Business Contracts

Noncompete Agreement

California

Asked on May 21, 2023

Noncompete agreement time restrictions?

I am an entrepreneur who recently signed a Noncompete Agreement with a potential business partner, and I am looking to gain a better understanding of the time restrictions that are in place. I am concerned that the terms of the agreement may prevent me from pursuing other opportunities in the future and want to make sure I am aware of all the restrictions before making any decisions.

Gagandeep K.

Answered May 30, 2023

The non-compete agreement will likely specify the non-compete period/time restriction. If that is not obviously stated, you should consider having an attorney review the non-compete agreement. Typically, a non-compete agreement in a partnership or LLC places a geographic limitation for a certain time period such that the partner/member is prevented from carrying-on a similar business in a geographic area where the partnership/LLC has done and continues to do business. You can read more about non-compete agreements in California here: https://www.contractscounsel.com/t/us/noncompete-agreement/california.

Read 1 attorney answer>

Employment

Noncompete Agreement

Connecticut

Asked on Aug 1, 2023

Noncompete agreement and change of control?

I recently accepted a new position with a company that has requested that I sign a noncompete agreement. I understand the agreement and the limitations it puts on me, but I am concerned about how the agreement would be affected if the company is sold or changes ownership in the future. I would like to understand my legal rights in the event of a change of control.

Thomas L.

Answered Aug 4, 2023

If the future company buys the equity of your current employer, the Non-Compete continues in effect. If the future company buys the assets, the Non-Compete is terminated. I would request a sentence be added to the effect that "if there is a change of control of the Company (meaning more than 50% of the equity interest or 50% of the voting equity control) is sold or transferred, then this Non-Compete Agreement is terminated.

Read 1 attorney answer>

Employment

Noncompete Agreement

New York

Asked on Jun 29, 2023

Noncompete agreement breach consequences?

I recently left my job as an employee at a company that I had worked for for over a year. I was asked to sign a noncompete agreement when I began the job, which I did. I have since started a new job in the same industry as my former employer, which is in violation of the noncompete agreement. I am now wondering what the consequences of this breach of contract may be and am seeking legal advice.

Gregory F.

Answered Jul 6, 2023

I would be happy to schedule a paid telephone consultation with you to review the non-compete agreement, advise you on its scope and enforceability, and answer your questions. Please contact me via email at greg@fidlonlegal.com to discuss.

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