Texas non-competes are still enforceable in 2026 if they comply with the Texas Covenants Not to Compete Act—even after the FTC’s rule targeting most worker non-competes. The practical reality is that Texas courts continue to scrutinize scope, geography, and consideration, and federal litigation over the FTC rule has shifted many employers toward narrower, trade-secret-focused covenants. […]
A Texas non-compete for a sales employee is enforceable only if it’s ancillary to an otherwise enforceable agreement and contains reasonable limits on time, geography, and scope under Texas Business & Commerce Code § 15.50. Because sales roles involve customer relationships and pricing intelligence, Texas courts scrutinize whether the restrictions match the employee’s actual territory
Texas non-compete agreements remain enforceable in 2026 if they comply with the Texas Covenants Not to Compete Act and are narrowly tailored, but employers must also track ongoing federal FTC non-compete litigation and any applicable injunctions. The FTC’s 2024 final rule changed the compliance conversation nationwide, even where state law traditionally favors well-drafted restraints. This
Texas courts can still enforce non-compete agreements under the Texas Covenants Not to Compete Act, despite the FTC’s 2023 proposed ban. The proposal has not displaced Texas law and remains tied up in federal administrative and court challenges. This article explains Texas enforceability rules, drafting and proof requirements, litigation steps, and practical strategies for employers
Texas employers can still enforce non-compete agreements, but only if the covenant is “ancillary to or part of” an otherwise enforceable agreement and is reasonable in time, geographic area, and scope under Texas Business & Commerce Code § 15.50. The 2021 amendments clarified key enforcement standards and strengthened courts’ ability to reform overbroad restrictions rather
Texas employers can still enforce noncompete agreements in court if they satisfy the Texas Covenants Not to Compete Act—despite the FTC’s 2024 noncompete rule facing legal blocks and uncertainty nationwide. In Texas, enforceability turns on whether the restriction is ancillary to an otherwise enforceable agreement and is reasonable in time, geography, and scope. This article
Texas non-compete agreements are enforceable only if they comply with the Texas Covenants Not to Compete Act (Texas Bus. & Com. Code § 15.50) and are “ancillary to or part of” an otherwise enforceable agreement. The 2021 amendments and recent Texas Supreme Court guidance have sharpened how employers should draft, prove, and remedy violations. This
