Hi there. I'm Attorney Robert Wood and I’ve handled matters involving Texas non-compete agreements for nearly 30 years. I use this blog to help employers and workers understand the complexities surrounding the enforcement of non-competes. If you have questions, please don’t hesitate to shoot me a message or call 469-754-2812.
Below you’ll find answers to the 15 questions I get more than any other about Texas noncompete law. Each answer is short and to the point. For almost every question I have also provided a link to a related post that addresses the question in greater detail and with more nuance.
In Texas, a non-compete must have reasonable limitations, offer adequate consideration, and protect legitimate business interests to be enforceable.
To get out of a non-compete agreement in Texas, you may negotiate with your employer, prove that the terms are unreasonable or unenforceable, or show that it violates legal standards.
Texas courts generally disfavor non-compete agreements but will enforce them if they are reasonable in scope, duration, geographic limitations, and protect legitimate business interests.
Yes, a company can prevent you from working for a competitor in Texas if you have signed a valid and enforceable non-compete agreement. Review the terms carefully and consult an attorney for any concerns.
In Texas, the enforceability of a non-compete does not change if you are laid off. Its validity depends on factors like consideration given, such as sharing of trade secrets, not just employment.
Non-compete agreements are legally binding in Texas and can have significant career implications. Violating these agreements can lead to legal consequences, including injunctions and damages.
Breaking a non-compete in Texas can result in legal action against you, such as injunctions preventing further violations and potential damages for losses caused to the employer.
Yes, in Texas, an independent contractor can be bound by a non-compete if it meets the standard legal requirements for enforceability.
A non-compete agreement in Texas must have reasonable geographic limitations to be enforceable. Agreements without any geographic limit are likely to be considered unreasonable.
As of now, there is no legislation in Texas indicating that non-compete agreements will be banned in 2024.
A non-compete in Texas is void if it has unreasonable terms, lacks adequate consideration, or doesn’t protect legitimate business interests.
The duration of a non-compete in Texas should be reasonable. Typically, a period of up to 2 years is considered reasonable, depending on the circumstances.
Good consideration for a Texas non-compete includes benefits like access to trade secrets, specialized training, or confidential information, beyond mere employment.
The Covenant Not to Compete Act in Texas sets legal standards for enforceable non-competes, including reasonable limitations on time, geography, and scope.
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