Primary statute
Tex. Bus. & Com. Code § 15.51(c)
Primary verifiedhttps://codes.findlaw.com/tx/business-and-commerce-code/bus-com-sect-15-51/
- Research verified
- 2026-05-08
Enforceable with limits
Non-compete enforceability in Texas
Mandatory judicial reformation if covenant is ancillary to an otherwise enforceable agreement. No damages for breaches before reformation.
What this means for you
Texas generally enforces non-competes that protect a legitimate business interest and are reasonable in duration, geography, and scope. Courts apply this state's reformation or blue-pencil approach to overbroad clauses.
Doctrine
Mandatory reformation. The statute requires courts to rewrite over-broad covenants to the extent necessary to make them enforceable.
Gotchas
- If reformation is required, the court 'shall' reform — not 'may.'
- No damages for pre-reformation breaches; only injunctive relief.
- Must be ancillary to an otherwise enforceable agreement — purely in-employment-only covenants face higher scrutiny.
Federal context
The FTC's 2024 federal non-compete ban was vacated nationwide in Ryan v. FTC and removed from the Code of Federal Regulations in February 2026. There is no federal ban in force — so Texas's state law controls. Read the federal status.
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