Are non-compete clauses enforceable in Texas?

Yes, but only if they are reasonable in scope, duration, and geographic area, and are ancillary to an otherwise enforceable agreement. Texas Business and Commerce Code §15.50 sets out the requirements.

How long can a non-compete last in Texas?

Texas courts generally find 1-2 years reasonable. Longer periods may be reformed by the court. The duration must be no greater than necessary to protect the employer's legitimate business interests.

Can a Texas court change my non-compete instead of voiding it?

Yes. Texas courts have the power to reform (or 'blue pencil') an overbroad non-compete to make it reasonable and enforceable, rather than simply striking it down entirely.

Non-Compete Clauses in Texas: What the Law Says

The Short Answer

It depends. Texas does enforce non-compete clauses, but only if they meet specific legal requirements. An overly broad or unreasonable non-compete can be reformed or thrown out by a Texas court.

Texas Law on Non-Competes

The Texas Business and Commerce Code §15.50 allows non-compete agreements if they:

Are ancillary to or part of an otherwise enforceable agreement (such as an employment agreement with consideration)
Contain reasonable limitations on time, geographic area, and scope of activity
Do not impose a greater restraint than necessary to protect the employer's legitimate business interests

The Texas Supreme Court clarified in Marsh USA Inc. v. Cook (2011) that the consideration supporting a non-compete can include the employer's promise to provide confidential information or specialized training.

Key Factors Texas Courts Consider

Duration — Courts generally find 1-2 years reasonable; 5+ years is often struck down
Geographic scope — Must be tied to where the employer actually does business
Activity restrictions — Cannot prevent you from working in your entire profession
Legitimate business interest — Must protect trade secrets, goodwill, or confidential information — not just prevent competition

Red Flags in Your Contract

A non-compete lasting more than 2 years
Nationwide or worldwide geographic restrictions
Vague language about what activities are restricted
No reference to specific confidential information or trade secrets being protected

Important: Texas Courts Can Reform

Unlike many states, Texas courts have the power to "blue pencil" or reform an overbroad non-compete rather than simply voiding it. This means a court can narrow the scope, duration, or geography to make it enforceable — so you can't assume an overbroad clause is automatically void.

When to Consult a Lawyer

Consider consulting an attorney if:

You're about to leave a job and your non-compete seems broad
Your employer is threatening legal action
You're being asked to sign a non-compete without receiving anything in return
You want to understand whether your specific non-compete would hold up in court

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Texas for guidance specific to your situation.