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Non-Compete Laws in Texas

Texas enforces a non-compete that is part of an otherwise enforceable agreement and reasonable in time, area and scope; for covenants made or renewed on or after September 1, 2025, covenants with physicians, dentists, nurses and physician assistants are capped at one year and five miles and need a buyout.

Last checked . General information, not legal advice.

Texas at a glance

Status
Enforceable if reasonable (statute)
Health care covenants made on or after Sept. 1, 2025 need a buyout capped at annual pay, a 1-year limit and a 5-mile radius.
Enforceable against employees
Yes, if reasonable
Salary threshold
No salary threshold
The statute sets no minimum salary.
Advance notice required
No
Health care covenants must state their terms clearly and conspicuously in writing.

Sources

Last checked

The rules in Texas

Are employee non-compete agreements banned, restricted or enforceable in Texas?

Status in Texas: Enforceable if reasonable (statute). Health care covenants made on or after Sept. 1, 2025 need a buyout capped at annual pay, a 1-year limit and a 5-mile radius.

Can an employer enforce a non-compete against an employee in Texas?

Yes, if reasonable. Enforceable against employees in Texas: yes, if reasonable.

Is there a minimum salary for a non-compete to be enforceable in Texas?

Salary threshold in Texas: No salary threshold. The statute sets no minimum salary.

Does Texas require employers to give advance notice of a non-compete?

No. Advance notice required in Texas: no. Health care covenants must state their terms clearly and conspicuously in writing.

Where do the Texas non-compete laws come from?

The rules above come from Tex. Bus. & Com. Code 15.50 and Tex. Bus. & Com. Code 15.501. Each source is linked on this page. We last checked them in October 2026.

Good to know

SB 1318 (2025) also voids a physician non-compete if the physician is discharged without good cause.

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.