Texas non-competes remain enforceable in 2026 if they meet the Texas Covenants Not to Compete Act’s requirements—despite the FTC’s 2024 attempted nationwide ban. The federal rule was challenged immediately, and Texas employers still primarily rely on state law and recent case guidance. This article explains how to draft an enforceable Texas non-compete after the FTC […]
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
Texas non-competes are enforceable only if they satisfy Texas Business & Commerce Code § 15.50, including being ancillary to an otherwise enforceable agreement and reasonable in scope. In 2026, Texas courts continue to scrutinize consideration, protectable interests, and overbreadth—and will reform some defective clauses. This update explains how to draft (and revise) a Texas-compliant non-compete
