Texas law lets employers seek an injunction within days or weeks after a breach if the non-compete is “ancillary to” an enforceable agreement and reasonable in time, geography, and scope under Tex. Bus. & Com. Code § 15.50. In 2026, fast action matters because employees can move accounts, data, and goodwill quickly—often before a case […]
In Texas, you can enforce a non-compete only if it is ancillary to an otherwise enforceable agreement and reasonable in time, geography, and scope under Tex. Bus. & Com. Code § 15.50. The 2023 Covenants Not to Compete Act sharpened how courts evaluate restrictive covenants and reinforced Texas’s policy favoring tailored, protectable interests over overbroad
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
Texas non-compete agreements remain enforceable only if they meet the Texas Business & Commerce Code § 15.50 “ancillary to an otherwise enforceable agreement” test and are reasonable in time, geography, and scope. The 2022 amendments to Texas’s non-compete law refined what qualifies as protectable goodwill and clarified limits in physician non-competes. This article explains how
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
