The Clause About Working Elsewhere
Bus. & Com. Code 15.50 — ancillary to an enforceable agreement, and reasonable
In Texas, a covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement when made, to the extent its limits on time, geographical area and scope of activity are reasonable and do not impose a greater restraint than necessary to protect the goodwill or other business interest of the promisee.
Physicians. A covenant against a licensed physician must also, among other things, not deny the physician access to a list of patients seen or treated within one year of termination, and provide access to patients' medical records on the patient's authorization.
Procedures and remedies. A separate section sets the procedures and remedies in an action to enforce a covenant not to compete.
| The assumption | What the law actually does |
|---|---|
| The assumptionSigning one is enough to make it binding | What the law actually doesIt must be ancillary to an otherwise enforceable agreement |
| The assumptionAny limit the employer chooses holds | What the law actually doesOnly reasonable limits no greater than necessary |
Non-solicitation and confidentiality agreements, trade secret law and the sale of a business follow rules of their own and are not all on this page. Whether a particular clause is enforceable is a question for a licensed Texas attorney.
Sources for this section (2)
- Bus. & Com. 15.50 — Criteria for enforceability of covenants not to compete
- Bus. & Com. 15.51 — Procedures and remedies in actions to enforce covenants not to compete
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Texas attorney.