Non-Compete Agreement Attorney in Austin, Texas

Non-compete agreements are a fixture of Austin's tech and professional services sectors. They're also frequently overbroad, sometimes unenforceable, and almost always negotiable. Texas law takes a middle path: it allows non-compete agreements when the requirements are met, but it also empowers courts to reform agreements that exceed reasonable limits rather than simply voiding them — which means employers can't assume that an aggressive non-compete will be enforced as written.

The Texas Covenants Not to Compete Act (Business & Commerce Code §15.50) sets the enforceability framework. An agreement not to compete must be ancillary to — and made as part of — an otherwise enforceable agreement. The classic qualifying agreement is one in which the employer promises access to confidential information, trade secrets, or specialized training in exchange for the non-compete obligation. An agreement where the only consideration is continued employment (or the promise of continued employment) often fails this test.

The limitations in the non-compete must also be reasonable. Texas courts look at three dimensions: time (how long the restriction lasts), geography (what area is covered), and scope of activity (what work is prohibited). A two-year restriction is often reasonable for senior executives; six months is more defensible for mid-level employees. A geographic restriction limited to Austin or Travis County is more reasonable than a statewide or nationwide restriction. A scope restriction limited to direct competitive activity is more reasonable than a broad prohibition on 'any work in the industry.'

Texas courts can and do 'blue pencil' — reform — non-compete agreements that are overbroad rather than voiding them entirely. A court might reduce a five-year restriction to one year, or narrow a nationwide restriction to the Austin market. The practical implication is that even a poorly drafted non-compete can be enforced in a reformed version, so employees who believe their non-compete is unenforceable cannot simply ignore it without legal counsel.

The FTC issued a rule in 2024 that would have largely banned non-compete agreements nationally, but that rule was blocked by federal courts. The status of federal non-compete regulation remains uncertain as of 2026. Texas law continues to govern non-competes entered into in Texas, and the Business & Commerce Code framework described above remains the applicable standard.

We connect Austin professionals who are evaluating, challenging, or negotiating non-compete agreements with employment attorneys who practice Texas restrictive covenant law. Whether you are reviewing an agreement before signing, evaluating an existing agreement before changing jobs, or responding to a threatened non-compete lawsuit, the analysis starts with the specific language of the agreement and the circumstances under which it was signed.