Texas Non-Compete Myth #2
#2: Non-Compete Agreements Are Unenforceable in Texas.
Texas courts have been enforcing non-compete agreements for many years and they are specifically authorized by Texas law – Texas Business and Commerce Code Section 15.50. The highlights from that statute:
a covenant not to compete is enforceable if it is ancillary to or part of an
otherwise enforceable agreement at the time the agreement is made
to the extent that it contains limitations as to time, geographical
area, and scope of activity to be restrained that are reasonable and
do not impose a greater restraint than is necessary to protect the
goodwill or other business interest of the promisee
The Texas Supreme Court has made non-compete agreements easier to enforce over the years and that trend is likely to continue. If proper, employers should be using non-competes as a legitimate business tool to protect themselves from unfair competition.
