ContractsNCATexas
TXSouthBusiness-FriendlyMedium Risk

Non-Compete Agreementin Texas

A contract restricting an employee or contractor from working for competitors or starting a competing business for a defined period after leaving. Texas's business-friendly legal climate creates specific considerations for NCA drafting and enforcement.

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Legal Climate
Business-Friendly
Non-Competes
Enforced
Governing Law
Very Popular
Key City
Houston

Texas Contract Law

Key Legal Fact

Texas Covenants Not to Compete Act permits non-competes if ancillary to enforceable agreement with limited restrictions.

Notable NCA Law

Tex. Bus. & Com. Code § 15.50 requires non-competes to be ancillary to otherwise enforceable agreement.

Key Clauses to Review

1
Geographic Scope
Requires Texas-specific drafting under business-friendly legal standards.
2
Duration of Restriction
Requires Texas-specific drafting under business-friendly legal standards.
3
Definition of Competitive Activity
Requires Texas-specific drafting under business-friendly legal standards.
⚠ Common Issue
Unenforceable scope under California and growing list of state laws

Major Industries in Texas

EnergyTechnologyHealthcareAgriculture

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