Houston Non-Compete Agreement Attorneys

Drafting, Reviewing, & Enforcing Non-Compete Agreements in Texas Since 1987

A non-compete agreement is only as valuable as its enforceability. In Texas, courts apply strict scrutiny to these agreements – and will reform or refuse to enforce those that are overbroad, lack adequate consideration, or fail to protect a legitimate business interest. A signed agreement is not the same as a protected business.

Whether you are an employer who needs agreements that will actually hold up in court, an executive evaluating restrictions before you sign, or an employee or business owner facing a non-compete dispute, the outcome depends on the specific language of the agreement and how Texas courts have treated similar situations.

Hendershot Cowart P.C. has drafted, reviewed, negotiated, and litigated non-compete agreements in Houston and across Texas since 1987. We represent employers, employees, executives, and independent contractors – as well as buyers and sellers of businesses – and we routinely pursue and defend non-compete violation claims.

Call (713) 783-3110 or contact us online to schedule a consultation.

On This Page

• How Our Non-Compete Agreement Attorneys Can Serve You
• What Makes a Non-Compete Agreement Enforceable in Texas?
• How Do You Enforce a Non-Compete Agreement in Texas?
• Special Considerations for Texas Physician Non-Compete Agreements
• Frequently Asked Questions

Whether you need a non-compete drafted, enforced, challenged, or reviewed before you sign, our attorneys can help:

• Draft non-compete agreements and restructure other contracts to ensure you have enforceable, business-critical protections in place. All Texas non-competes need to be specific and limited regarding geographical area, scope of activity, and period of time because no employer has the right to limit an individual’s business indefinitely; doing so would likely make the agreement unenforceable.
• Enforce non-compete agreements using all available legal remedies. If you believe a current or former employee has stolen your proprietary, confidential information or has improperly joined a competitor or client, our Houston non-compete law attorneys can help minimize the damage and prevent misappropriation of intellectual property.
• Defend against non-compete violation claims and misappropriation of trade secrets using the best available defenses, including employer breach of contract, an overly broad scope of restrictions making the agreement not enforceable, or illegitimate business interests. We have represented both employers and employees in non-compete violation claims.
• Have you been asked to sign a non-compete? We review and negotiate agreements and other restrictive covenants for prospective employees in need of clear guidance on their rights and options before signing an employment contract, especially with a non-compete clause. No employer has the right to contractually prohibit an individual’s business indefinitely; non-competes must be reasonable in their restrictions to be enforceable. Executives may have many special considerations that require additional negotiations and modifications.

Depending on the work you do and the information your company processes, your business has the potential to live and die by the strength of your non-compete agreements. But not every non-compete agreement is created equal.

To be enforceable in Texas, a non-compete agreement must:

• Be ancillary to an otherwise enforceable agreement, such as an employment agreement
• Be in exchange for “consideration” (something in return, such as specialized training or confidential information)
• Be reasonable in scope of activity
• Be reasonable in geographic area
• Be reasonable in duration/time limits

If a court deems any of these elements broader than necessary to protect the interests of the business, the court is required to reform or nullify the agreement. The attorneys of Hendershot Cowart P.C. can advise you on reasonable limitations for your specific industry. We can also identify which elements can be challenged should you seek to get out of a non-compete agreement.

Enforcement begins the moment you suspect a violation – and speed matters. Courts can issue orders within days, and the evidence most useful to your case – device contents, access logs, email records – can disappear just as fast. Courts also pay attention to how quickly an employer acts. A significant delay can signal to a judge that the harm was not as urgent or irreparable as claimed, weakening your case.

A common method of seeking relief in the face of competitive harm is to file a lawsuit and seek a temporary restraining order (TRO), followed by a temporary injunction. This will allow the employer time to construct their case, and it stops the potentially injurious activity – another reason it is critical to act quickly. 

To obtain a TRO or temporary injunction, the employer must demonstrate that:

• A valid cause of action exists; 
• The employer has a probable right to the relief sought; and 
• There is a probable, imminent, and irreparable potential for harm with no adequate remedy at law.

Constructing a thorough case involves gathering evidence, witness testimony, and relevant documentation through discovery. The discovery process typically includes access to the former employee's work devices and email accounts, forensic analysis of data transfers and deletions, depositions of key witnesses, and documentation of customer communications or solicitations.

If the case proceeds to trial or is settled through negotiations or mediation in the employer's favor, available damages in these cases include compensatory damages for actual losses caused by the violation, lost profits where trade secrets were misappropriated, the value an investor would have paid for misappropriated information, and potential royalties for its use.

See the full timeline of what can happen after a non-compete violation in Texas.

Have questions about a non-compete agreement – whether you're drafting one, enforcing one, or facing a dispute? Call (713) 783-3110 or contact us online to speak with a Houston non-compete attorney at Hendershot Cowart P.C..

Because physician non-compete agreements can impact doctor-patient relationships, Texas law has special requirements above and beyond the elements of an executive non-compete agreement.

Specifically, physician non-competes must allow doctors:

• Access to a list of patients treated within the year preceding the separation from the practice
• Reasonable access, upon patient consent, to relevant medical records
• To provide for patients who need acute care even after the contract or employment has been terminated
• It must contain a provision allowing the physician to buy out of the agreement. Effective September 1, 2025, due to the passage of Texas Senate Bill 1318, a buyout provision cannot exceed the practitioner's total annual salary and wages at the time of contract termination. 
• Non-compete agreements can only restrict practice within a five-mile radius of where the physician or covered healthcare practitioner primarily practiced (effective September 1, 2025). 
• Non-compete periods are capped at one year from the date of contract or employment termination, preventing employers from imposing indefinite or excessive time restrictions (effective September 1, 2025).
• All terms and conditions must be clearly and conspicuously stated in writing (effective September 1, 2025).

With a thriving practice in both business law and healthcare law, Hendershot Cowart P.C. is uniquely suited to draft, negotiate, and review non-compete agreements for physicians, medical professionals, and hospitals practicing in Texas.

Your Texas Non-Compete Law Firm – Contact Hendershot Cowart P.C. Today

Like all legal contracts, a non-compete agreement (also known as a covenant not to compete) should be entered into with clarity. Companies that use outdated templates or improperly drafted agreements can suffer severe financial repercussions should those agreements turn out to be unenforceable.

Our law firm has been reviewing, drafting, and enforcing non-compete and non-disclosure agreements since 1987. If you have questions about the language of your employment agreement, or need to draft or enforce a non-compete clause, call our non-compete lawyers and draw from our decades of experience with non-competition agreements.

For answers to your non-compete questions and case-specific legal advice, schedule a consultation by calling (713) 783-3110 or send us a message online.

Are non-compete agreements negotiable?

Yes – and more often than employees realize.

Many people assume that a non-compete presented alongside an employment offer is a take-it-or-leave-it condition of the job. That is rarely true, particularly for candidates with specialized skills, senior-level experience, or knowledge the employer genuinely needs. The agreement is a contract, and like any contract, its terms can be discussed before you sign.

Before signing, have an attorney review the agreement. An experienced non-compete attorney can identify provisions that are overbroad or unlikely to be enforceable under Texas law, give you an accurate picture of what the restrictions actually mean for your career, and advise you on what is standard for your industry and role. That assessment gives you a foundation for negotiation rather than guesswork.

Common points of negotiation include:

• Geographic scope – restricting competition to the specific territory where you actually work or serve clients, rather than a broader region or statewide prohibition
• Duration – reducing the restriction period to something courts are more likely to enforce, typically one to two years
• Scope of activity – narrowing the prohibited activities to specific competitive conduct rather than a broad ban on working in your field or industry
• Specific competitors – limiting the restriction to named direct competitors rather than any company in the same general industry
• Consideration – if the employer is asking you to accept significant restrictions, you can use the non-compete as leverage to negotiate higher compensation, additional benefits, or other terms

If full negotiation is not possible, consider asking whether the non-compete can be replaced with a non-disclosure agreement or a non-solicitation agreement. These alternatives protect the employer's legitimate interests – confidential information and client relationships – without restricting your ability to work in your field.

What should executives consider before signing a non-compete agreement?

Executives often have greater leverage in negotiating their terms than other employees due to their position and value to a company. Because they also impact one’s professional options in the future, executives should work with attorneys to thoroughly review the terms and conditions and negotiate modifications when necessary. From the viewpoint of a senior executive, preserving future and post-employment opportunities is of the greatest concern.

We help executives review their non-compete agreements with a focus on how the agreement may impact professional options in the future or create exposure to future limitations or violations. Our business legal team has decades of experience facilitating these mutually agreeable negotiations and modifications of executive non-compete agreements.

What counts as consideration for a Texas non-compete agreement?

For a non-compete to be enforceable in Texas, the employee must receive something of genuine value in exchange for agreeing to the restrictions – and that something must be tied to the employer's legitimate business interests, not simply the job itself.

Recognized forms of consideration in Texas can include:

• Access to confidential information or trade secrets. If an employer provides an employee with proprietary business information – pricing strategies, client lists, product formulas, internal processes – as part of their role, that access can support a non-compete. The employer's implied or express promise to provide such information is sufficient, even if the information is delivered after the agreement is signed.
• Specialized training. Employer-funded training that gives an employee skills or knowledge they would not otherwise have – an industry certification, a proprietary methodology, or technical expertise specific to the employer's business – can constitute adequate consideration.
• Equity compensation. Stock options and other forms of equity compensation tied to protecting the employer's goodwill have been recognized by Texas courts as sufficient consideration, provided the connection between the compensation and the employer's protectable interest is clear.

What typically does not qualify: a pay raise, a bonus, a severance package, or the continuation of at-will employment standing alone. These may represent value to the employee, but Texas courts have consistently found they are not sufficiently tied to the employer's interest in protecting confidential information, trade secrets, or business goodwill.

I signed a non-compete with my previous employer; is it safe to start my own business?

It depends. Some non-compete agreements are unenforceable and will not interfere with your efforts to start your own business. However, if your business idea is in direct violation of a non-compete agreement that is reasonable and likely enforceable, you may need to wait until the non-compete expires or relocate outside of the restricted geographic area to start a successful business without the threat of litigation.

Before making any move, read about the most common mistakes Texas employees and executives make when leaving to compete – some of which can turn a defensible situation into an expensive one. Then, consult with an attorney to discuss your unique situation. 

Are non-compete agreements in Texas enforceable if the employee is laid off or terminated?

A non-compete agreement is enforceable in Texas if an employee is terminated – regardless of the reason – assuming the agreement is reasonable in scope and duration and meets the other criteria outlined above.

Call (713) 783-3110 or contact us online to schedule a consultation.