Non-Compete Agreement Violation in Houston

Preparing for Non-Compete Agreement Litigation

Can Texas Courts Void or Modify Non-Compete Agreements?

Enforcing a non-compete agreement is not always an all-or-nothing decision. In Texas, a court has the ability to modify – or even nullify – the non-compete if the court determines that it is not reasonable. The courts are given wide latitude to reform a non-compete if the court believes the scope of activity, duration, or geographic area are too restrictive.

Courts also have the power to order a person or entity seeking to enforce the non-compete to pay the other side's legal fees if the court finds that an employer knew the non-compete was overly broad and still sought to enforce it.

How Do I Get Out of a Non-Compete Agreement in Texas?

If you are considering other employment or starting your own enterprise, you may want to seek an end to your agreement with your current or former employer.

To get out of a non-compete agreement in Texas, you will need to demonstrate one (or more) of the following:

• The contract owner failed to provide or uphold consideration, which may impact the legality of the agreement
• The contract owner engaged in unethical or unlawful conduct, or has a record of failing to consistently enforce the terms of non-compete agreements
• The actions you have taken since disengaging with the contract owner have not actually violated the terms of the non-compete
• The non-compete does not protect a legitimate business interest. Companies often require all of their employees to sign a non-compete. However, if you work in a position that doesn’t involve interacting with trade secrets or other propriety interests (working as a receptionist, for example), you can argue that your non-compete didn’t protect any legitimate interests, and is invalid.
• The terms of the non-compete (concerning geography, duration, and scope of activity) are unreasonable
• You never signed a non-compete agreement in the first place

Proving one or more of the above points may help release you from the restrictions of a non-compete agreement. An attorney who specializes in business contracts, like the attorneys at Hendershot Cowart P.C., can review any written agreements you signed and advise you of your options.

If you violate the terms of a legally enforceable non-compete agreement, you may face a lawsuit. Fortunately, you will also have the opportunity to defend yourself, and there are many effective defenses to non-compete violations, including:

• The language in the non-compete agreement does not specifically prohibit the conduct you are engaging in
• The non-compete agreement is not enforceable, according to state law
• You left your job due to harassment, discrimination, or illegal activities at the workplace
• Your employer is not protecting a “legitimate business purpose”
• The non-compete agreement is unreasonable in terms of time, geography, or activities
• Your employer has already breached the underlying employment agreement
• Your employer talked you into signing the non-compete agreement via fraudulent inducement
• The non-compete agreement is invalid under existing law

Non-compete agreements cannot be used to control or punish current or former employees, and employers can only enforce specific and reasonable non-compete agreements. In addition, a non-compete that promotes monopolies or keeps crucial goods and services from the public may not be enforced.

Whether you want to work for a competitor, start your own business, or otherwise make a career move that is restricted by a non-compete agreement, discuss your rights and legal options with our experienced attorneys beforehand. We can also help you defend yourself from any lawsuit your employer may file.

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
• To buy out of their 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)

At Hendershot Cowart, we represent both employers and employees in non-compete agreement disputes. When you bring us on-board for your case, we will examine the terms and conditions of the agreement. Then, we will work with you to identify the best path forward whether you are pursuing or defending a non-compete violation claim.

We also work with business owners and executives to draft legally sound and enforceable employment contracts and non-compete agreements. With any non-compete matter, our goal is to empower you with information and the benefit of our years of experience, so you can make the best decision for your business or health care practice.

Request a Consultation to Learn More

At Hendershot Cowart P.C., business law and contractual matters are a cornerstone of our practice. This expertise translates to an efficient and comprehensive resolution to your non-compete agreement dispute. Our award-winning business lawyers are ready to work with you.