Texas · Standard edition

Texas Non-Compete Agreement Template

Create a Texas non-compete agreement online. The Standard non-compete covers the restricted activities, restricted period, geographic area, consideration, confidentiality, protected rights, court modification, and the Texas rules that decide whether a non-compete is enforceable.

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Texas rules built into this template

  • Under Tex. Bus. & Com. Code § 15.50, a covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement and contains reasonable limitations as to time, geographic area, and scope of activity that do not impose a greater restraint than necessary to protect the goodwill or other business interests of the employer. For physicians and certain other health care practitioners, §§ 15.50 and 15.501 (as amended effective September 1, 2025) add limits, including a maximum of one year and a five-mile radius for physicians and a buyout no greater than the practitioner's annual salary and wages.
  • Federal law: the FTC's 2024 rule banning most non-competes was set aside by a federal court and is not in effect, so state law controls.

What the Non-Compete Agreement includes

  1. Purpose and Legitimate Business Interests
  2. Non-Competition
  3. Restricted Period
  4. Geographic Area
  5. Consideration
  6. Confidentiality
  7. Protected Rights
  8. Acknowledgments
  9. Remedies
  10. Reformation and Severability
  11. State Law Requirements
  12. General Provisions
  13. Governing Law

Frequently asked questions

Are non-compete agreements enforceable in Texas?
Under Tex. Bus. & Com. Code § 15.50, a covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement and contains reasonable limitations as to time, geographic area, and scope of activity that do not impose a greater restraint than necessary to protect the goodwill or other business interests of the employer. For physicians and certain other health care practitioners, §§ 15.50 and 15.501 (as amended effective September 1, 2025) add limits, including a maximum of one year and a five-mile radius for physicians and a buyout no greater than the practitioner's annual salary and wages.
How long can a non-compete last?
Courts in Texas look at whether the length is reasonable for the business interest being protected. Many enforceable employee non-competes last between six months and two years.
What is the difference between the Standard and Professional Non-Compete Agreement?
The Standard edition is a complete, state-aware Non-Compete Agreement for common situations. The Professional edition adds longer clause coverage, schedules, and optional modules for more complex matters. You can preview either edition free before you pay.

Non-Compete Agreement templates for other states

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