Non-Compete/Non-Disclosure Agreement for Texas
Generate a non-compete/non-disclosure agreement that complies with Texas law, with 4 mandatory clauses and 6 compliance checks built in.
What's required
Ancillary to Enforceable Agreement
Tex. Bus. & Com. Code § 15.50(a)
Reasonable Limitations Provision
Tex. Bus. & Com. Code § 15.50(2)
Severability and Judicial Reformation
Tex. Bus. & Com. Code § 15.51(c)
Specific Consideration Identification
Tex. Bus. & Com. Code § 15.50(a); Alex Sheshunoff Mgmt. Servs., L.P. v. Johnson, 209 S.W.3d 644 (Tex. 2006)
What's prohibited
Worldwide restriction or restriction without geographic limitation
Texas requires non-competes to have reasonable geographic limitations. A worldwide or geographically unlimited restriction is presumptively unreasonable under Tex. Bus. & Com. Code § 15.50(2), though courts may reform rather than void such provisions.
Non-compete duration exceeding 5 years
While Texas does not set a statutory maximum, courts generally find durations over 2 years suspect and over 5 years unreasonable. A 2-year maximum is the safe harbor for most employment-related non-competes.
Continued employment as the sole consideration for the non-compete
Under Texas law since the 2009 amendments, at-will employment alone is insufficient consideration for a non-compete. The employer must provide additional consideration such as access to trade secrets, specialized training, or stock options.
Non-Compete/Non-Disclosure Agreement in other jurisdictions
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