Are non-compete agreements (covenants not to compete) enforceable in Texas?
The enforceability of a non-compete agreement depends on the language of the agreement and the circumstances in which the agreement was executed. But, yes, they can be enforceable under the proper circumstances. However, many are not enforceable. Keep in mind that the factual circumstance of every case is different and requires independent analysis to determine the enforceability of such agreements. In Texas, the Covenants Not to Compete Act provides two criteria for the enforceability of a covenant not to compete. The covenant must (1) be ancillary to or part of an otherwise enforceable agreement at the time the agreement was made and (2) contain 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. TEX. BUS. & COM. CODE ANN. ยง 15.50 ( Vernon Supp. 1997). The enforceability of the covenant not to compete is a questi
