10/09/2026
An overbroad non-compete is not a dead non-compete in Texas. It is a non-compete a judge rewrites and then enforces.
Section 15.51(c) of the Business and Commerce Code says a court shall reform unreasonable limits on time, geography or scope and shall enforce the covenant as reformed. Shall, not may.
So an employee who assumes a five year nationwide covenant is a nullity is assuming wrong. A court can cut it down and hold them to the smaller version.
The part employers skip: where a court has to reform, it may not award damages for a breach occurring before reformation. You get the injunction going forward. The lost profits claim is gone.
Pull your three most used covenants before the next offer letter goes out, and check one thing on each: does the territory match where that person actually worked.
For informational purposes only. This is not legal advice.