Houston Non-Compete Agreement Violation Lawyers

Representing Employers and Employees in Non-Compete Disputes Across Texas - Know Your Rights Before You Make a Move.

On This Page

• Is a Non-Compete Agreement Enforceable in Texas?
• What Type of Relief or Damages Can I Pursue for Breach of a Non-Compete Agreement?
• My Employee Did Not Sign a Non-Compete – Can They Still Be Stopped From Competing Against Me?
• Can I Hire Someone Who Signed a Non-Compete?
• Preparing for Non-Compete Agreement Litigation
• Can Texas Courts Void or Modify Non-Compete Agreements?
• How Do I Get Out of a Non-Compete Agreement in Texas?
• Non-Compete Violation Defense Strategies
• What Physicians Need to Know about Non-Compete Agreements
• Non-Compete Disputes Move Fast – So Should You

To be enforceable in Texas, a non-compete agreement must be included with another agreement (such as an employment offer), and be in exchange for “consideration” (e.g., something in return, such as specialized training or confidential information).

Additionally, it must stipulate specific limitations and restrictions pertaining to:

• Scope of activity
• Duration
• Geographic area

Courts will only enforce non-compete agreements that are reasonable in terms of geographic limitations, the length of time restrictions will be in place, and the scope of prohibited work and activities. Courts also closely scrutinize non-competes to ensure they are not overly burdensome to an individual and their professional Future. They must also be specifically tailored to the specific employee and designed to protect legitimate business interests (for example, trade secrets, confidential information, and business goodwill).

Employers enforcing a non-compete may seek injunctive relief in the form of prohibiting a former executive or employee from acting in violation of the non-compete agreement.

Beyond injunctive relief, you may also pursue various types of compensation to recover damages to your business. These include:

• Seeking monetary or compensatory damages to regain capital lost from the non-compete violation if the case involves a breach of fiduciary duty, misappropriation of secrecy, or another contract breach;
• Seeking punitive damages if the individual violated the non-compete maliciously;
• Seeking liquidated damages if the contract owner stipulated a cost to violating the non-compete in the initial contract; and
• Seeking compensation for court costs and attorney’s fees, if the court rules in favor of the contract owner.

There are two specific situations in which an employee may be stopped from competing with his former employer by the courts. First – even in the absence of a written agreement – an employee owes a fiduciary duty of loyalty to his or her employer. If the employee attempts to take confidential, proprietary information or misappropriate trade secrets (such as recruiting customers while employed), then the employer may be able to bring a suit for breach of these fiduciary duties. Second, under the Texas Uniform Trade Secrets Act, an employee cannot take and use the trade secrets of a former employer. That said, employers are advised to require that employees sign confidentiality agreements and not solely rely upon these common law duties.

Need help with a non-compete dispute in Texas? Contact Hendershot Cowart P.C. today to schedule a consultation with our experienced Houston non-compete violation attorneys.

If you hire someone with a non-compete agreement in place, both you and your new employee will be exposed to potential litigation. To manage that exposure, you can require your prospective new hire to sign a statement confirming their non-compete obligations and prohibiting use of the former employer’s confidential information.

You can also ask legal counsel to review the candidate’s non-compete agreement and evaluate the agreement's enforceability under Texas law, or explore other legal alternatives to exit the non-compete agreement.

Your attorney can also clarify which business activities are restricted by the non-compete agreement and then design the work role to avoid potential violations of the non-compete agreement – at least until the agreement expires.

Above all, be aware that you are exposing yourself to risk by hiring someone who signed a non-compete – and be prepared to face litigation. Work with your attorney to determine what would happen if you or your employee are sued and start building your defense and potential counterclaims now.

If you suspect an employee or former employee is violating their non-compete agreement, you must act quickly. Start by gathering the facts and consulting an attorney to ensure you have legal grounds for your claim.

• Documents: Make sure you have a copy of every document the employee in question signed. If your employee signed a non-compete agreement in exchange for benefits, gather records of the benefits awarded as well.
• Witness interviews: You and your legal team will also need to conduct witness interviews. Coworkers may have witnessed the employee’s violation of the non-compete agreement, and clients and customers can confirm suspected violations. Before asking a customer or client to provide an affidavit, consider how your request may impact the business relationship. Your lawyer can help you balance the interests of your business with the interests of your case.
• Electronic evidence: Another way to gather evidence is to search the employee in question’s computer. Often, employers can preserve electronic evidence by determining which files an employee accessed, transferred, printed, or deleted. If you suspect an employee is violating their non-compete agreement, preserve their emails and hard drives immediately, confiscate employer-provided equipment (like work laptops and cell phones), and remove their access to any shared computer systems or drives. These steps can also mitigate the damage of a non-compete violation.
• Enforceability: Once you have evidence of the violation, you will need to ensure your non-compete agreement is enforceable and review the state laws for enforcement. Your attorney can help you evaluate enforceability under state law.

Remember that litigation should always be the last resort. Try sending a cease-and-desist letter before initiating legal action, and weigh the pros and cons of litigation before filing a claim. Preparing ahead of time will help you keep up with the fast pace of non-compete litigation. Start your preparation today with a Houston non-compete violation lawyer from Hendershot Cowart P.C.

Enforcing a non-compete agreement is not always an all-or-nothing decision. In Texas, a court can 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 is 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.

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. There are several grounds to challenge an overly broad non-compete in Texas. An attorney can review your agreement and identify the strongest path forward.

The non-compete violation attorneys at Hendershot Cowart P.C. has represented both sides of these disputes for decades in Houston and across Texas. We'll give you a clear assessment of your agreement, your exposure, and your options – before you do anything that can't be undone.

Call (713) 783-3110 or contact us online. Consultations are confidential.

Receiving a cease-and-desist letter or learning that your former employer has filed – or is threatening to file – a lawsuit can feel paralyzing. But a demand letter is not a judgment, and not every non-compete claim holds up under scrutiny.

The strength of any enforcement action depends entirely on the specific agreement, the specific facts, and how Texas courts have treated similar disputes. Our attorneys evaluate each situation on its merits and identify the most effective path forward, whether that means negotiating a resolution, challenging enforceability, or mounting a full litigation defense.

Defenses we regularly pursue on behalf of clients include:

• The agreement fails to meet Texas enforceability requirements – it lacks adequate consideration, is not ancillary to an otherwise enforceable agreement, or its restrictions are unreasonable in scope, duration, or geography
• The employer materially breached the underlying employment agreement before seeking to enforce the non-compete
• The employer induced the employee to sign through fraudulent misrepresentation
• The employer has a pattern of selectively or inconsistently enforcing the agreement, undermining its legitimacy
• The conduct at issue falls outside the specific restrictions the agreement actually prohibits
• The agreement does not protect a legitimate business interest – it was drafted too broadly or applied to employees without meaningful access to trade secrets or confidential information
• The non-compete would operate as an unreasonable restraint on trade or effectively prevent the public from accessing critical goods or services

If you have received a demand or are anticipating one, contact Hendershot Cowart P.C. before responding. Early intervention almost always produces better outcomes than waiting or reacting without counsel.

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 and, effective September 1, 2025, 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 a physician's practice within a five-mile radius of where the physician or covered healthcare practitioner primarily practiced (effective September 1, 2025)
• Physician 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)

To learn more, visit our dedicated Physician Non-Compete Agreements in Texas page. Or reach out to our firm by calling (713) 783-3110. 

Whether a former employee is already working for a competitor or you've just received a cease-and-desist letter, the window to act is narrow. Courts grant – and deny – temporary restraining orders quickly, and the evidence that matters most can disappear just as fast.

Hendershot Cowart P.C. represents both employers enforcing non-compete agreements and employees or executives defending against them. We've handled these disputes from the first demand letter through trial. During a confidential consultation, we can tell you exactly where you stand.

Our team will:

• Review your agreement and assess enforceability under Texas law
• Identify your strongest available remedies or defenses
• Move quickly if injunctive relief is on the table
• Pursue or defend against claims for damages, attorney's fees, and trade secret misappropriation

Call our Houston non-compete dispute attorneys at (713) 783-3110 or contact us online to schedule a confidential consultation. We represent clients throughout Texas.