Below you’ll find answers to the 15 questions I get more than any other about Texas noncompete law. Each answer is short and to the point. For almost every question I have also provided a link to a related post that addresses the question in greater detail and with more nuance. Get noncompete help What is required for a covenant not to compete to be enforceable in Texas? In Texas, a non-compete must have reasonable limitations, offer adequate consideration, and protect legitimate business interests to be enforceable. Read: Are Non-Compete Agreements Enforceable in Texas in 2024? How do I get ..read more

Non-disclosure agreements play a vital role in safeguarding sensitive information and maintaining confidentiality in various business relationships. In Texas, these agreements hold significant legal weight and are frequently utilized by businesses. Whether you’re a business owner or an employee, having a solid understanding of a standard Texas non-disclosure agreement is crucial. Here are some frequently asked questions about NDAs and how they work.   What Is a Non-Disclosure Agreement? A non-disclosure agreement (NDA) is a legal contract that prevents individuals from sharing specific ..read more

“I can ignore my noncompete because Biden banned them, right?” I can’t tell you how many times I’ve heard this over the past few weeks. No, neither the Biden Administration nor the Federal Trade Commission has banned noncompetes. Even if the FTC were to attempt to do so, the new rule would almost certainly be immediately challenged in court. Chances are, such a rule would be litigated for years and ultimately end up before the United States Supreme Court. Nothing has changed regarding how Texas courts view noncompete agreements.   On July 9, 2021, Pres ..read more

If you run a small business you look to control expenses wherever you can. And if you are going to ask your employees to sign a non-compete agreement, you are probably tempted to use a templated noncompete agreement rather than paying an attorney to draft one for you. Here are our two cents: It’s going to be much more costly for you to have an unenforceable non-compete agreement than to pay a qualified attorney a one-off fee for one that you can actually enforce. Sample Texas Noncompete What Is a Non-Compete Agreement and Why Is It Used? A non-compete agreement is a contract between two parti ..read more

This is a topic that occasionally comes up with respect to geographic limits on Texas noncompetes. If the noncompete provision contains a 10-mile geographic scope, does that mean ten miles measured in driving distance or ten miles through the air? Sometimes, this is an important distinction, because a particular point might be ten miles away through the air, but 10.5 miles away per Google Maps. There is not much case law on this issue. However, a 2018 case from a federal district court in Dallas contained this holding: [T]he non-compete as written is ambiguous. The non-compete prohibits form ..read more

In Texas, physician noncompetes differ from noncompetes in any other industry in several respects. The primary difference is this: The Texas noncompete statute requires that the physician be given the option to buyout of the noncompete if the physician wishes to do so. This “option to buyout” is mandatory under Texas law. Often, if a physician leaves a medical practice and begins to practice medicine in another place, this activity attracts the attention of his former employer–particularly if there is a noncompete in place that prohibits such competitive activity. What can the former employer ..read more

As an attorney who frequently handles contract dispute matters involving Texas non-compete agreements, one of the questions that I am asked more than any other (by both employers and employees) is: “Is my non-compete agreement enforceable?” Are Non-compete Agreements Enforceable in Texas? The answer is: A non-compete agreement IS enforceable in Texas if it is supported by valid consideration and is reasonable in time, geographic scope, and activities to be restrained. A Texas employer can utilize a non-compete agreement to protect company goodwill and confidential ..read more

Are you looking for an attorney to review your Texas physician employment contract? You’re in the right place. Click here to get started. 7 Employment Contract Blunders for Physicians to Avoid… According to data provided by the Kaiser Family Foundation (KFF), there are more than 950,000 professional active physicians in the United States, including nearly 62,000 in the state of Texas alone. Each year, many of these physicians change jobs and many new doctors enter the field directly out of residency. When a physician starts a new job, the terms of their employment will largely be governed by ..read more

What is a Non-Solicitation Provision? Texas non-solicitation provisions (aka. non-solicitation clauses or non-solicitation agreements) prohibit the employee, both during employment, and for a period of time thereafter, from soliciting the employer’s clients, employees, or both.  Texas employment agreements frequently contain non-solicitation provisions, along with non-compete provisions and non-disclosure provisions. But whether a particular act or communication constitutes solicitation is not always clear. How Does Texas Law Define Solicitation? First, we need to understand wh ..read more

“An oral contract is as good as the paper it is written on.” This is simply not true in Texas. In fact, a Texas jury awarded $11 billion dollars in damages to Pennzoil when Texaco interfered with an oral contract for the sale of Getty Oil to Pennzoil, one of the largest jury verdicts in U.S. history.  While it is true that some contracts must be in writing, such as the sale of real estate, Texas courts will enforce many oral promises.  To understand the concept of an oral contract, we first need to know the elements of a valid contract. The elements of a valid contract under Texas l ..read more