A non-compete can affect whether you accept a new position, hire a competitor’s employee, start a business, or complete the sale of a company. Before making a decision with financial and legal consequences, a Houston non-compete agreement lawyer can review the language, explain the practical risks, and help you pursue a solution that protects your interests.
The Curley Law Firm assists Houston-area businesses and individuals with drafting, negotiating, enforcing, and challenging restrictive covenants under Texas law.
Are Non-Compete Agreements Enforceable in Texas?
Yes. Unlike states that generally prohibit employee non-competes, Texas allows them when they satisfy specific legal requirements. Under the Texas Covenants Not to Compete Act, a covenant is enforceable when it:
- Is ancillary to or part of an otherwise enforceable agreement;
- Includes reasonable limitations concerning time, geographic area, and the activities being restricted; and
- Does not impose a greater restraint than necessary to protect the employer’s goodwill or another legitimate business interest.
Whether a restriction is reasonable depends on the agreement, the parties’ relationship, the employee’s responsibilities, and the business interests involved. A two-year restriction may be appropriate in one situation but excessive in another. The same is true of a geographic boundary or a prohibition against working in a particular industry.
Signing a Houston non-compete agreement does not automatically mean every restriction in it is enforceable. However, assuming the agreement can be ignored may lead to an injunction, litigation expenses, or a claim for damages.
How a Houston Non-Compete Agreement Lawyer Can Help
Non-compete disputes often move quickly. An employer may seek a temporary restraining order or injunction to stop a former employee from taking a new position, contacting customers, or using confidential information. An employee may need advice before resigning or giving a prospective employer assurances about what work they can legally perform.
A Houston non-compete agreement lawyer can help by:
- Reviewing the agreement and related employment documents;
- Determining which state’s law may govern;
- Evaluating whether the covenant protects a legitimate business interest;
- Analyzing its duration, territory, and restricted activities;
- Identifying confidentiality, trade-secret, and customer non-solicitation obligations;
- Negotiating a release, waiver, or narrower restriction;
- Sending or responding to a cease-and-desist letter; and
- Pursuing or defending against an injunction and related claims.
Early review can preserve options that may disappear after an employee begins competing, contacts former customers, or receives a demand letter.
Reviewing a Non-Compete Before Signing
The best time to address an unreasonable restriction is often before signing it. A non-compete agreement attorney can identify language that may interfere with a future career move or business opportunity and negotiate more precise terms.
Important provisions include:
- Restricted activities. A covenant should not prevent someone from performing work unrelated to the duties or information involved in the former position.
- Geographic scope. The territory should have a reasonable connection to the business, customers, or market the individual actually serves.
- Duration. Texas law does not impose one universal time limit for ordinary employee non-competes. An appropriate period depends on the circumstances and the interest being protected.
- Triggering events. The agreement should clearly state when the restriction begins and whether it applies following a resignation, termination, layoff, or sale of a business.
- Choice of law and venue. These terms can affect which law controls and where a dispute must be litigated, particularly when an employee works across state lines.
A careful review should also cover non-solicitation, confidentiality, invention-assignment, and return-of-property provisions. Even when a non-compete is questionable, separate duties involving trade secrets or confidential information may remain enforceable.
Enforcing a Non-Compete Against a Former Employee
For a business, enforcement should begin with a realistic assessment of the agreement and the conduct at issue. Hiring a lawyer does not necessarily mean immediately filing suit. In many situations, a targeted letter or negotiated agreement can protect customer relationships and confidential information without the need for prolonged litigation.
When immediate harm is likely, the company may seek temporary injunctive relief. The available evidence can include the former employee’s contract, job responsibilities, access to confidential information, customer contacts, downloaded files, communications, and activities for the new employer.
Texas law also permits a court to reform, or narrow, a covenant that contains unreasonable limitations. A court may revise the time, territory, or activity restrictions and enforce the covenant as reformed. The statute places important limits on the recovery of damages for conduct occurring before reformation, making careful drafting valuable from the outset.
Challenging or Defending Against a Non-Compete
An employee or new employer may have several grounds for challenging a restrictive covenant. The non-compete may not be connected to an otherwise enforceable agreement, or its restrictions may reach beyond the work, customers, territory, or interests the former employer has a legitimate reason to protect.
Possible solutions include:
- Obtaining written confirmation that the planned work is permitted;
- Negotiating a release or reduced restricted period;
- Limiting the employee’s duties for a defined period;
- Avoiding specified customers, accounts, or confidential subject matter;
- Asking a court to declare the covenant unenforceable; or
- Defending against an employer’s request for an injunction.
Anyone searching for a non-compete agreement attorney should look for counsel who can evaluate both the contract language and the business realities behind it. The most useful strategy may be negotiation, litigation, or a carefully structured transition that reduces risk for everyone involved.
Special Rules for Texas Healthcare Professionals
Texas applies additional requirements to certain healthcare non-competes entered into or renewed on or after September 1, 2025. Under the updated law, covenants involving physicians, dentists, nurses, and physician assistants generally must be clearly stated in writing, last no longer than one year, and cover no more than a five-mile radius from the practitioner’s primary practice location. They must also provide a buyout capped at the practitioner’s annual salary and wages at the time of termination.
Physician agreements have additional patient-access and continuity-of-care requirements. A physician non-compete is also void when the physician is involuntarily discharged without good cause.
What About the FTC’s Nationwide Non-Compete Ban?
The Federal Trade Commission announced a nationwide non-compete rule in 2024, but that rule never took effect. A federal court stopped its enforcement, and the FTC later moved to dismiss its appeal. The agency currently states that the Noncompete Rule is not in effect or enforceable.
As a result, Texas employers and employees should not assume that federal action automatically invalidated their agreements. Texas law remains central to the enforceability analysis, although federal regulators may still scrutinize particular practices under other legal authority.
Speak with a Houston Non-Compete Agreement Lawyer
A non-compete dispute can place a career, customer base, transaction, or business investment at risk. Waiting until a new job has started or a lawsuit has been filed can make the situation harder to resolve.
The Curley Law Firm helps Houston-area employers, employees, executives, entrepreneurs, and business owners understand their agreements and make informed decisions. Attorney Adam Curley represents clients in both transactional matters and business disputes, allowing him to evaluate not only what a contract says but also how its terms may be negotiated or enforced.
Contact The Curley Law Firm to speak with a Houston non-compete agreement lawyer about drafting an enforceable covenant, reviewing restrictions before a job change, responding to a suspected violation, or defending against an enforcement action. Your success is our success—let’s get started today.
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