A Texas non-compete agreement is a written contract in which a worker agrees not to compete with a business for a set time and place. Texas regulates this promise, called a covenant not to compete, under Section 15.50 of the Texas Business and Commerce Code.[1.1] An employer commonly uses non-compete agreements when an employee or contractor will learn trade secrets or client lists, or build client relationships.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current Texas law. If you notice an error or outdated information, please contact us.
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Fill out the form online or download it, then complete the blanks for the job. Review the finished form before both parties sign it. The form calls the worker the Agent and the business the Company. For other states, see our general non-compete agreement template. State pages are also available for California, Florida, New York and Massachusetts.
The Texas template is built from six parts. They cover the parties, how long the covenant lasts, what the worker may not do, the non-solicitation promise, the limits a court can reform, and the governing law with signatures.
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Non-compete forms are recognized and enforced to a varying extent by the vast majority of US states, making them fairly widespread amongst a large number of firms. Find out more about the most common states searched by our website users regarding non-competes.
Texas courts enforce a covenant not to compete only when it is ancillary to or part of an otherwise enforceable agreement made at that time. Its limits on time, geographic area and scope of activity must be reasonable. They cannot be a greater restraint than needed to protect the goodwill or other business interest of the party it protects.[1.1]
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 …
The statute adds these points:
In practice, an employer should put the limits on time, territory and activities in writing and keep them narrow. An employee should read the restrictions before signing and ask whether the limits fit the job. This page explains the published statute in plain words. For legal advice on a specific covenant, a Texas non-compete attorney can review the form. An attorney can say how these rules apply to the facts.
The statute sets extra conditions for a covenant not to compete against a physician. It sets a shorter list for a covenant relating to the practice of dentistry or nursing, or practice as a physician assistant. A covenant that misses these conditions is not enforceable against that worker.[1.1][1.4] In the table, the end date means the date the contract or employment ended.
| Condition | Physician | Dentistry, nursing or physician assistant |
|---|---|---|
| How long it can last | Must expire not later than the one-year anniversary of the end date.[1.1] | Must expire not later than the one-year anniversary of the end date.[1.4] |
| Geographic area | No more than a five-mile radius from the location where the physician primarily practiced before the end date.[1.1] | No more than a five-mile radius from the location where the practitioner primarily practiced before the end date.[1.4] |
| Buyout | Must provide for a buyout by the physician of no more than the physician's total annual salary and wages at the end date.[1.1] | Must provide for a buyout by the practitioner of no more than the practitioner's total annual salary and wages at the end date.[1.4] |
A covenant against a physician must also meet these conditions under Section 15.50:[1.1]
A covenant not to compete relating to the practice of medicine is void and unenforceable against a physician licensed by the Texas Medical Board. This applies if the physician is involuntarily discharged from the contract or employment without good cause.[1.1]
Non-compete agreements are enforceable in Texas when their limits on time, territory and activity are reasonable. A court must reform a covenant that is broader than necessary. The answers below cover enforceability and how long a covenant can last.[1.1][1.2]
A covenant not to compete is enforceable when it meets these tests:[1.1]
If a court finds the limits too broad, it must reform the covenant and enforce it as reformed.[1.2]
For a physician, the covenant must expire not later than the one-year anniversary of the date the contract or employment ended.[1.1] The same one-year limit applies to a covenant relating to dentistry, nursing or practice as a physician assistant.[1.4]
For other workers, the time limit must be reasonable. It can be no greater than needed to protect the goodwill or other business interest of the party the covenant protects, such as an employer. A physician covenant that misses the physician conditions on this page is not enforceable against that physician.[1.1]
General information, not legal or tax advice.
