What is a requirement for a non-compete agreement to be enforceable?

For a non-compete agreement to be enforceable, it is essential that the terms are reasonable in both scope and duration. Texas law dictates that a non-compete clause must protect a legitimate business interest and should not unduly restrict a person's ability to engage in their profession or trade.

This means that the geographical area covered by the non-compete should be limited to the area where the business operates and the duration should be appropriate in length, typically not exceeding one or two years, though this can vary depending on the specifics of the industry and agreements involved. Courts will evaluate these terms to ensure that they do not impose an excessive burden on the individual’s ability to seek employment.

Other options, such as requiring a notary public's signature, involvement in a financial transaction, or publication in a contract registry, are not necessary conditions for the enforceability of a non-compete agreement under Texas law. Thus, focusing on the reasonableness of the non-compete’s terms is key to ensuring that it stands up to legal scrutiny.