A Texas noncompete is enforceable if it is part of an otherwise enforceable agreement and is reasonable in how long it lasts, where it applies, and what work it restricts. If it is too broad, a Texas court must rewrite it to be reasonable rather than throw it out. Noncompetes for physicians and other healthcare workers follow stricter rules.
What makes a Texas noncompete enforceable?
Section 15.50 of the Texas Business and Commerce Code sets two requirements:
- It must be tied to an otherwise enforceable agreement. The employer has to give something that creates a real interest worth protecting. Most often that is confidential information, specialized training, or, as the Texas Supreme Court has held, stock options linked to the company’s goodwill. A promise of confidential information counts once the employer actually provides it.
- It must be reasonable in time, geographic area and scope of activity, and no broader than needed to protect the employer’s goodwill or other legitimate business interests.
Continued at-will employment alone is not enough consideration.
What happens if it’s too broad?
A Texas court must reform an overbroad noncompete to make it reasonable, for example by cutting a nationwide restriction to the area where the employee actually worked. But the employer cannot recover damages for conduct before reformation. And if the employer knew the restriction was unreasonable and tried to enforce it anyway, the employee may recover attorney’s fees.
Didn’t the FTC ban noncompetes?
No. The Federal Trade Commission’s 2024 rule banning most noncompetes was set aside by a federal court in Texas before it took effect, and the FTC later dropped its appeal. Texas law still controls most noncompete disputes, though the FTC can still challenge particular agreements as unfair.
What about doctors and other healthcare workers?
Physician noncompetes must include a buyout and protect patients’ access to their doctor. Since September 1, 2025, new and renewed physician noncompetes are limited to one year and five miles, with the buyout capped at a year’s salary. Similar limits now apply to dentists, nurses and physician assistants. See What Happens When a Texas Medical Practice Breaks Up?
I’m leaving my job. What should I do?
- Get a copy of everything you signed: offer letter, noncompete, confidentiality and invention agreements, and equity documents.
- Don’t take files, customer lists or code, even ones you created. Trade secret claims often hurt more than the noncompete.
- Get advice before accepting the new job or contacting customers. A narrower role or a negotiated release is often possible.
I’m the employer. How do I enforce one?
Move quickly. Courts are skeptical of emergency relief when an employer waits. Preserve evidence of what the employee accessed before leaving, and send a measured demand letter. If there is real harm, seek a temporary restraining order.
From our case files
- Enforcing a noncompete. We sued and settled with a former employee who violated his noncompete and used the company’s confidential client information (2014).
- Austin startup protected. We sued and settled with a departing co-founder and officer of an Austin biomedical startup to enforce his noncompete (2009).
- Defending an executive. A major U.S. software company sued a software executive we represented under his noncompete. The case settled with our client paying nothing (2008).
- Cancelling a noncompete. For a Texas software firm, we sued a rival and obtained cancellation of a noncompete covering multiple employees who had moved to our client (2007).
Client names are withheld for confidentiality. Every case turns on its own facts, and past results do not guarantee a similar outcome. See more representative results.
The Burk Law Firm has both enforced and defeated noncompetes for Texas employers and employees. Call (512) 306-9828.
Related: What Can You Do If Someone Steals Your Trade Secrets in Texas? · What Happens When a Texas Medical Practice Breaks Up?
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.