Work · Non-Compete Agreements
Are Non-Competes Enforceable in Texas?
Whether an employee non-compete holds up in Texas, any income threshold that voids one, the exceptions and carve-outs, and how the state compares after the 2024 to 2025 changes. Cited to the statute or the controlling law.
The rules and exceptions in Texas
What makes a non-compete enforceable here, when it is void, and the carve-outs for particular workers or agreements.
No statutory change, but the case-law trend is employer-friendly: the Texas Supreme Court has relaxed the "ancillary agreement" standard in recent years, making covenants somewhat easier to enforce. Confirm the current §15.50(b) physician provisions.
| The rule in this state | What it means |
|---|---|
| Ancillary to an enforceable agreement | Section 15.50 requires the covenant to be ancillary to, or part of, an otherwise enforceable agreement when it is made, such as one tied to trade-secret access or specialized training. |
| Reasonable time, area, and scope | The limits on time, geographic area, and scope of activity must be reasonable and no greater than necessary to protect the employer’s goodwill or business interest. |
| Courts may reform an overbroad covenant | Under §15.51 a court can blue-pencil, or narrow, an overbroad covenant to the extent reasonable rather than throw it out entirely. |
| Exceptions and carve-outs | What it means |
|---|---|
| Physicians | Section 15.50(b) imposes special requirements on physician non-competes, including a buy-out option, access to patient records, and continuity of care. |
| Overbroad covenants are narrowed, not enforced as written | An unreasonable covenant is reformed by the court to a reasonable scope, and the employer’s damages or fees may be limited when reformation is required. |
What you can do right now
Concrete, neutral steps if you signed or were asked to sign a non-compete in Texas. This is legal information, not legal advice.
- Check whether the covenant is reasonable and tied to a real agreement
A Texas non-compete is enforceable only if it is ancillary to an otherwise enforceable agreement and reasonable in time, area, and scope. An overbroad one may still be narrowed by a court.
- If you are a physician, look for the buy-out terms
Physician non-competes must meet special requirements, including a buy-out option and access to patient records. A physician covenant missing those terms is vulnerable.
- Do not assume an overbroad clause is void
Unlike some states, Texas courts reform an unreasonable covenant to a reasonable scope rather than striking it. Plan around the narrowed version, not the whole thing being gone.
- Talk to a Texas employment lawyer before you switch jobs
Whether your covenant is enforceable turns on its terms and your role. A licensed Texas employment attorney can assess it. The State Bar can refer you to one.
Whether a non-compete can be enforced against you turns on its exact terms and your role. This resource can connect you with a licensed employment attorney who can review it.
→ State Bar of Texas — Lawyer ReferralThis is general legal information, not legal advice. A non-compete is different from an NDA or a non-solicitation clause, and enforceability turns on the specific facts, so confirm your situation with a licensed attorney.
What Texas workers get wrong about non-competes
Texas enforces employee non-competes, but only within limits set by statute. Section 15.50 makes a covenant enforceable if it is ancillary to an otherwise enforceable agreement, such as one giving you trade-secret access or specialized training, and if its restrictions on time, area, and scope are reasonable and no broader than needed. The feature that surprises people is reformation: if a Texas covenant is overbroad, a court will narrow it under §15.51 rather than throw it out, so an aggressive clause is not simply void. Physicians get special protection, including a required buy-out option and continued access to patient records. The broader trend has been employer-friendly, with the Texas Supreme Court easing the older "ancillary agreement" requirements. There is no federal overlay anymore, since the FTC rule was removed in 2026. Before changing jobs, assume a reasonable Texas non-compete can be enforced and have the terms reviewed.
Common questions
Are non-compete agreements enforceable in Texas?
Yes, if reasonable. Under Business and Commerce Code §15.50 a covenant is enforceable when it is ancillary to an otherwise enforceable agreement and reasonable in time, area, and scope. Overbroad covenants are narrowed by the court, not voided.
Can a Texas court rewrite an overbroad non-compete?
Yes. Section 15.51 lets a court reform, or blue-pencil, an unreasonable covenant to a reasonable scope. So an overbroad Texas clause is usually narrowed rather than struck down entirely.
Do physician non-competes work in Texas?
They can, but only if they meet special requirements in §15.50(b), including a buy-out option, access to patient records, and continuity of care. A physician covenant missing those terms is vulnerable.
Did the FTC ban change Texas non-competes?
No. The FTC’s 2024 rule was enjoined and removed from the federal rules in February 2026, so enforceability is purely state law. Texas continues to enforce reasonable non-competes as before.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.