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ARTICLE · 12 MAY 2025

Non-Compete Enforceability: In Texas And Beyond

Non-compete agreements have been under fire for years, and it's unlikely 2025 will be any different. While non-competes are currently governed at the state level; the Federal Trade Commission's (FTC) nationwide ban...

United StatesEmployment and HR
The Wallenstein Law Group
The Wallenstein Law Group
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Non-compete agreements have been under fire for years, and it's unlikely 2025 will be any different. While non-competes are currently governed at the state level; the Federal Trade Commission's (FTC) nationwide ban on most non-competes was supposed to take effect in September 2024. Instead, a Texas federal court blocked the rule, arguing the FTC lacks enforcement authority. The appeal is still pending, and the new Chair, Andrew Ferguson, may lead the FTC in a different direction.

What does that mean for Texas businesses?

Texas has long enforced non-competes when they meet certain legal requirements. Under the Texas Covenants Not to Compete Act , a non-compete agreement ("NCA") is enforceable if it:

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