Non-Compete Agreements in Texas: What's Enforceable in 2026
Texas allows non-competes — but only with strict requirements. Here's what makes them stick or get tossed by a Texas court.
Published 2026-04-22 · 7 min
Yes, Non-Competes Are Enforceable in Texas
Unlike California (which voids most non-competes), Texas courts enforce them — but only if they meet strict criteria under the Texas Business and Commerce Code §15.50. Get any element wrong and the entire clause can be struck down.
Texas Non-Compete Requirements
All three must be met:
What Courts Reject
Texas courts strike down non-competes that are: overly broad geographically, longer than necessary to protect interests, prevent the worker from earning a living, or aren't supported by valid consideration (training, confidential info, stock, or new employment counts).
Reformation Doctrine
Texas is unique — if a non-compete is too broad, courts can REFORM it (narrow it down) rather than throw it out entirely. This favors employers, but only if the contract has a reformation clause built in.
Free Texas Non-Compete Template
iContract generates Texas-specific non-compete agreements with the required ancillary agreement language, reasonable scope defaults, and reformation clauses. Free in under 2 minutes.
FAQ
How long can a Texas non-compete last?
Most enforceable Texas non-competes are 1-2 years. Courts may uphold up to 3 years for executives or highly trained roles, but anything longer faces serious challenge.
Can I include a non-compete in an at-will employment offer?
Yes, if accompanied by valid consideration: training, access to trade secrets, stock options, or the new employment itself (in some cases). At-will alone may not be enough.
Does the FTC ban affect Texas non-competes?
The FTC's 2024 nationwide non-compete ban was struck down by federal courts in 2024-2025. Texas non-competes remain enforceable under state law as of 2026.
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