Texas Enforceability
Texas Non-Compete Agreement
Texas enforces non-competes if they're tied to a real, separate agreement with genuine consideration and are reasonable in time, geography, and scope of activity.
Is a non-compete enforceable in Texas?
The Texas Covenants Not to Compete Act (1989) is the framework Texas courts still use today. The core requirement is that the covenant be 'ancillary to an otherwise enforceable agreement' — meaning it has to be tied to something with its own real consideration, like access to trade secrets, equity, or specialized training. Continued employment by itself doesn't count.
Beyond that, Texas applies a fact-specific reasonableness test to time, geography, and scope of activity. Courts have upheld non-competes running 1-4 years, but a restriction with no geographic boundary at all, or one that amounts to an industry-wide ban unrelated to the employee's actual job, is vulnerable to being struck down or narrowed.
Texas singled out physicians for extra protection starting September 1, 2025: medical non-competes must now offer a buyout option worth one year's salary, expire within a year, and cover no more than a 5-mile radius — a much tighter standard than the general rule.
Reference: Texas Covenants Not to Compete Act. This is general educational information, not legal advice — confirm current Texas requirements before relying on a non-compete agreement.
What Texas requires for enforceability
- Must be ancillary to an otherwise enforceable agreement — continued employment alone is not enough consideration.
- Consideration typically means access to proprietary information, stock/equity, or specialized training given in exchange for the covenant.
- Reasonable time restriction — Texas courts commonly uphold 1-4 years depending on the facts.
- Reasonable geographic scope — an agreement with no geographic limit at all is suspect.
- Reasonable scope of activity — a non-compete can't amount to an industry-wide ban unrelated to the employee's actual role.
- Special rule for physicians (effective September 1, 2025): must allow a one-year-salary buyout, expire after 1 year, and cover no more than a 5-mile radius.
Recent changes to watch in Texas
A new physician-specific rule took effect September 1, 2025, requiring a buyout option, a 1-year cap, and a 5-mile geographic limit for medical non-competes.
How to create your Texas non-compete agreement
- 1. Open the iRunDocs non-compete generator with Texas pre-selected as the governing state.
- 2. Enter employer, employee, restriction period, geographic scope, and consideration details.
- 3. Review the PDF preview, then download your document.
- 4. Have both parties sign — and if you're unsure whether your specific terms will hold up in Texas, have an employment attorney review it before relying on it.
Frequently asked questions
What makes a Texas non-compete enforceable?
It must be ancillary to an otherwise enforceable agreement with real consideration (not just continued employment), and reasonable in time, geographic scope, and scope of activity.
How long can a Texas non-compete last?
There's no bright-line rule, but Texas courts commonly uphold agreements in the 1-4 year range depending on the specific facts and interest being protected.
Are physician non-competes different in Texas?
Yes. As of September 1, 2025, physician non-competes must allow a one-year-salary buyout, expire within a year, and cover no more than a 5-mile radius.
Non-compete enforceability in other states
iRunDocs provides document tools and educational information. It is not a law firm and does not provide legal advice.