Do Non Competes Hold up in Texas?

A non compete agreement is enforceable in Texas if it is supported by valid consideration, and is reasonable in time, geographic scope, and activities to be restrained. Generally, Texas law disfavors contracts and arrangements that restrict employee mobility.

What voids a noncompete agreement?

The reasonableness of a non-compete agreement is usually at the center of any court challenge that should arise. In fact, unreasonable terms are the most common reason for a non-compete agreement to be invalidated. Frequently, the terms of a non-compete agreement will be challenged based on being overly broad.

Does Texas allow non-compete agreements?

Texas law provides that a covenant not to compete is enforceable only if it: is ancillary to or part of an otherwise enforceable agreement. contains reasonable limitations as to time, geographical area, and scope of activity.