Texas Covenants Not to Compete Act

How to Enforce a Non-Compete Agreement in Texas After the 2023 FTC Rule Challenges

How to Enforce a Non-Compete Agreement in Texas After the 2023 FTC Rule Challenges

Texas employers can still enforce non-compete agreements under the Texas Covenants Not to Compete Act—even as the FTC’s 2023–2024 federal rulemaking and court challenges created uncertainty nationally. The key is proving the covenant is “ancillary to or part of” an otherwise enforceable agreement and is reasonable in scope, time, and geography. This article explains enforceability […]

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How to Draft an Enforceable Non-Compete Agreement in Texas After the FTC Non-Compete Ban (2026 Guide)

How to Draft an Enforceable Non-Compete Agreement in Texas After the FTC Non-Compete Ban (2026 Guide)

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.

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How to Enforce a Non-Compete Clause in Texas After the FTC Non-Compete Ban: Contract Drafting and Litigation Checklist

How to Enforce a Non-Compete Clause in Texas After the FTC Non-Compete Ban: Contract Drafting and Litigation Checklist

Texas courts can still enforce non-compete clauses under the Texas Covenants Not to Compete Act (Tex. Bus. & Com. Code § 15.50) if they are ancillary to an enforceable agreement and reasonable in time, scope, and geography. The FTC’s 2024 non-compete rule created national uncertainty, but Texas enforcement remains driven primarily by state statute and

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How to Enforce a Non-Compete Agreement in Texas After the 2024 FTC Noncompete Rule: What Employers Need to Know

How to Enforce a Non-Compete Agreement in Texas After the 2024 FTC Noncompete Rule: What Employers Need to Know

Texas employers can still enforce a non-compete agreement in 2026—but only if it meets the Texas Covenants Not to Compete Act and survives heightened scrutiny after the FTC’s 2024 noncompete rule. The federal rule is tied up in litigation and does not automatically erase every Texas non-compete, especially for sale-of-business covenants and certain senior roles.

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How to Draft an Enforceable Non-Compete Agreement for Texas Employees in 2026 Under the FTC Rule Changes

How to Draft an Enforceable Non-Compete Agreement for Texas Employees in 2026 Under the FTC Rule Changes

Texas non-competes remain enforceable in 2026 only if they satisfy the Texas Covenants Not to Compete Act (TCCNCA) and can be justified under the FTC’s evolving federal posture. Employers face heightened scrutiny because FTC rule changes and ongoing litigation have narrowed the practical room for broad restraints. This article explains how to draft a Texas

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How to Enforce a Non-Compete Agreement in Texas After the FTC Noncompete Ban: Key Exceptions and Contract Drafting Tips

How to Enforce a Non-Compete Agreement in Texas After the FTC Noncompete Ban: Key Exceptions and Contract Drafting Tips

Texas employers can still enforce non-compete agreements under the Texas Covenants Not to Compete Act—even as the FTC’s 2024 noncompete rule faces major court challenges and limited, shifting effect. Businesses in Houston, Dallas–Fort Worth, Austin, San Antonio, and across Texas are reassessing restrictive covenants amid heightened scrutiny. This article explains Texas enforcement requirements, key exceptions

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How to Draft a Texas Noncompete Agreement That Holds Up Under the Texas Covenants Not to Compete Act (2026)

How to Draft a Texas Noncompete Agreement That Holds Up Under the Texas Covenants Not to Compete Act (2026)

Texas noncompete agreements are enforceable only if they satisfy the Texas Covenants Not to Compete Act, including being “ancillary to or part of” an otherwise enforceable agreement and containing reasonable limits on time, geography, and scope. Because courts can reform (but may also limit fee recovery), careful drafting matters as much as enforceability. This article

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Navigating Business Contract Pitfalls

How to Draft a Texas Non-Compete Agreement After the 2024 FTC Rule: Enforceability, Notice, and Severability Clauses

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

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How to Enforce a Non-Compete Agreement in Texas After the 2023 FTC Proposed Ban on Noncompetes

How to Enforce a Non-Compete Agreement in Texas After the 2023 FTC Proposed Ban on Noncompetes

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

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Building Your Cyber Defense Firewall

How to Draft a Texas Non-Compete Agreement for a Small Business in 2026 Under the FTC Rule Changes

Texas non-competes are enforceable in 2026 only if they satisfy the Texas Covenants Not to Compete Act—yet many will be functionally unusable if the FTC’s non-compete rule is in effect. Small businesses must draft with both Texas statutory requirements and fast-moving federal litigation risk in mind. This article explains how to structure a Texas non-compete

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