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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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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Josh Bernstein has been serving real estate and corporate transactional clients since 2002. His experience is varied, and he enjoys working on and puzzling out novel and complex corporate and real estate matters. Josh’s experience includes, among other things, the following: representation of public companies in connection with SEC reporting and compliance work (proxies, 10-K’s; 10-Q’s; 8-K’s, etc.); representation of public and private company securities issuances (including private placements, and other similar offerings); assistance in structuring and drafting joint ventures, both for investors and operating partners, and including both real estate and corporate ventures; handling public and private company mergers and acquisitions; and asset sales and dispositions; assisting clients, big and small, with real estate acquisitions, sales and financings; managing large-scale and multi-state real estate portfolio acquisitions, dispositions and financings; complex condominium creation, structuring and governance work, including: commercial condominiums, use of condominiums as a land planning tool, wholesale condominium property acquisitions and dispositions, and rehabilitating failed or faulty condominium legal structures to make ready for sale; development of restrictive covenants and owners’ association documents for master-planned communities; compliance with federal statutes governing real estate sale and development (including, without limitation, the Interstate Land Sales Full Disclosure Act, the Housing for Older Persons Act, and the Americans with Disabilities Act); representation of real estate lenders, for both improved and unimproved property, and including numerous construction financings secured by real estate; assistance with commercial leasing; from both the landlord and tenant side, and including condominium leasing; training residential home and condominium sales staff for compliance with applicable local and federal law; and workouts of all kinds. When he’s not busy lawyering, Josh may be found watching 80’s commercials, flying a single-engine plane, playing poker, or trying to be a good dad.

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I am a highly accomplished and dedicated immigration attorney, renowned for providing top-tier immigration legal services that consistently exceed expectations. I am known for my expertise in offering exceptional representation across a broad spectrum of immigration cases, including EB-2 National Interest Waivers (NIW), O visas, EB-1A, family-based immigration, TPS, Adjustment of status, asylum petitions, and skillful advocacy in Immigration Court proceedings. My clients rely on my unwavering commitment to their immigration needs, trusting in my in-depth knowledge of the intricate legal processes and my steadfast determination to secure favorable outcomes. My reputation as a leading authority in the field is a testament to my unwavering commitment to delivering unparalleled, high-quality immigration services. In addition, I am fluent in Ukrainian and Russian.

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Christian Davila received his Juris Doctorate from St. Mary’s University and becoming a member of the State Bar of Texas in 2013. Before law school, he studied at Texas A&M International University (TAMIU), and participated in multiple programs across various fields of study, including the University of Texas Medical Branch-School of Medicine’s “Early Medical School Acceptance Program,” and the Hispanic Association of Colleges & Universities’ “National Internship Program” at the Library of Congress in Washington, D.C. Christian’s legal experience includes criminal law (both prosecution and defense), family law, transactional law, business litigation, real estate litigation, and general civil litigation. Christian was previously in-house counsel for a multi-million dollar apartment construction and management company, handling all property acquisition, document drafting, negotiations, and litigation. Christian is a former member of the American Association for Justice (formerly the Association of Trial Lawyers of America), and he has been distinguished by the National Trial Lawyers as one of their TOP 40 Civil Plaintiff attorneys in Texas UNDER 40 years old. He likes weightlifting, reading comicbooks, and being silly with his kids in his spare time.

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Employment

Noncompete Agreement

Connecticut

Asked on Jun 3, 2023

Noncompete agreement and promotions?

I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.

Thomas L.

Answered Jun 16, 2023

It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.

Read 1 attorney answer>

Employer

Noncompete Agreement

Connecticut

Asked on Jul 13, 2023

Can a noncompete agreement be waived?

I am a small business owner in the retail industry and I am looking to hire a new employee. The employee has a noncompete agreement with their previous employer that I am concerned about. I want to know if it's possible for the agreement to be waived so that I can be sure I'm making the right decision in hiring this employee.

Thomas L.

Answered Jul 21, 2023

Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.

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Employee Rights

Noncompete Agreement

Texas

Asked on Jun 3, 2023

Noncompete agreement and moonlighting?

I am an employee at a company that has recently asked me to sign a noncompete agreement. I am considering doing so, but I am concerned about whether or not the agreement would prevent me from taking on additional freelance work outside of my normal job. I am interested in moonlighting and need to know if a noncompete agreement would limit my ability to do so.

Curt L.

Answered Jun 6, 2023

If you moonlighting work is in the same business and same market, it is almost certainly prohibited by a noncompete agreement.

Read 1 attorney answer>

Employer

Noncompete Agreement

Florida

Asked on Jul 6, 2023

How to draft a noncompete agreement?

I am a business owner who is looking to hire a new employee and I want to ensure that my business does not suffer from any competition that the employee might bring in the future. I need to know how to draft a noncompete agreement so that I can protect my business from any potential risks.

Daniel D.

Answered Jul 21, 2023

Some things that would be relevant to know are: what industry are you in? What specific competition are you worried about? Are you going to include non-disclosure provisions, no-solicitation provisions or non-circumvention provisions? What risks are you specifically worried about?

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Employee Rights

Noncompete Agreement

New York

Asked on Dec 5, 2024

Can my employer enforce a non-compete agreement I signed even though I was not provided any additional compensation or benefits in return?

I recently started a new job and was asked to sign a non-compete agreement as a condition of employment. However, I just found out from a colleague that my employer has been enforcing the non-compete agreement against former employees and preventing them from working in similar roles at competing companies. I am concerned because I was not given any additional compensation or benefits in exchange for signing the agreement, and I believe it may be unfair and potentially unenforceable. Can my employer legally enforce the non-compete agreement even though I did not receive any additional compensation or benefits in return?

Damien B.

Answered Dec 6, 2024

Hello! Generally, New York courts require that a non-compete agreement be supported by adequate consideration. If the agreement is signed at the beginning of employment, the job itself may serve as adequate consideration. However, if the non-compete is signed after employment begins, the employer may need to offer additional benefits, such as a raise or promotion, for the agreement to be enforceable. There are other defenses against enforcement. For a non-compete agreement to be enforceable, it must be reasonable in terms of duration, geographic scope, and the scope of activities it restricts. A court will evaluate whether the agreement is necessary to protect the employer’s legitimate business interests, such as confidential information or customer relationships. If not, a court could rule the noncompete is not enforceable.

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