Non-Compete Laws in Texas
Enforceable with limits
Texas enforces non-compete agreements if they are part of an otherwise enforceable agreement, supported by valid consideration (such as access to trade secrets or specialized training), and reasonable in scope, duration, and geographic area. Texas also restricts non-competes for physicians, dentists, nurses, and physician assistants, requiring a buyout clause capped at one year's salary with strict geographic limits.
Key details
| Enforceability | Enforceable with limits |
|---|---|
| Consideration required | Yes — Must be ancillary to an otherwise enforceable agreement with valid consideration such as confidential information, trade secrets, or specialized training. |
| Banned industries | Physicians, dentists, nurses, and physician assistants have specific protections including buyout clauses. |
| Blue pencil doctrine | Yes — Texas courts use reformation, meaning they can rewrite overly broad non-competes to make them reasonable rather than voiding them entirely. |
| Key statute | Tex. Bus. & Com. Code §§15.50-15.52 |
What this means for you
If you believe your non-compete is overly broad, Texas courts may narrow its scope rather than eliminate it. Consult an employment attorney.
Non-compete laws in Texas: what you need to know
Texas enforces non-compete agreements under a specific statutory framework that requires them to be part of an otherwise enforceable agreement and supported by valid consideration. The most common form of consideration is access to trade secrets, confidential information, or specialized training. Simply offering employment, without providing access to proprietary information, may not be sufficient to support a Texas non-compete.
Texas is notable for its use of reformation rather than blue penciling. When a court finds that a non-compete is overly broad, it can rewrite the agreement to make it reasonable and then enforce the modified version. This is more favorable to employers than states where courts void overbroad agreements entirely, because it means the employer still gets some level of protection even if the original agreement was poorly drafted.
In 2025, Texas enacted restrictions on non-competes for physicians, dentists, nurses, and physician assistants. The new law requires a buyout clause capped at one year's salary and imposes strict geographic limits. These protections reflect the national trend of shielding healthcare workers from non-competes that can reduce patient access to care.
For Texas workers, the practical question is often whether your employer provided you with genuine access to trade secrets or specialized training that justifies the non-compete. If your employer gave you access to confidential information, customer lists, or specialized knowledge, the non-compete is more likely to be enforceable. If your role did not involve such access, the agreement may lack the necessary consideration.
Texas non-competes must be ancillary to an otherwise enforceable agreement. This means the non-compete must be part of a broader contract that includes mutual obligations. A standalone non-compete agreement that is not tied to any other enforceable promise may not meet this requirement.
More Texas workplace laws
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Frequently asked questions about non-compete laws in Texas
The non-compete must be ancillary to an otherwise enforceable agreement with valid consideration, such as access to trade secrets, confidential information, or specialized training. The job offer alone may not be sufficient.
Yes. Texas courts use reformation, meaning they can rewrite overly broad non-competes to make them reasonable. Unlike states that void overbroad agreements, Texas courts modify them and enforce the revised version.
Yes. Texas requires physician, dentist, nurse, and physician assistant non-competes to include a buyout clause capped at one year's salary, with strict geographic limits.
Texas does not set a specific statutory maximum duration, but the agreement must be reasonable. Courts evaluate duration as part of the overall reasonableness analysis.
No. Texas does not use an income threshold. Enforceability depends on whether the agreement is ancillary to an enforceable agreement with valid consideration and is reasonable in scope.