Anyone know the current rules/state of the FTC non compete ruling? Are they or are they not enforceable in Texas? Also, what is the legal process of a NC, do you have to receive a signed copy of both parties for it to take effect and if you don't have a copy can it be enforced? Not saying I have one but word is it may be coming down the pipeline and curious the rules of one now.

US judge strikes down Biden administration ban on worker 'noncompete' agreements

Diggity said:

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US judge strikes down Biden administration ban on worker 'noncompete' agreements

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I read a similar article and basically means the federal ban in a moot point in texas?

Nation wide

So back to the old rules - they're enforceable under certain circumstances and basically can't be punitive.

They can't be overly broad but being punitive is kind of the point. Obviously within limits.

Non-competes are enforceable in Texas as long as they don't violate the Texas Covenants Not to Compete Act. Even if that Biden order wasn't struck down, Texas courts probably would have ignored it. Biden has no authority to tell states whether and to what extent they can enforce non-competes.

Compensatory, not punitive. Unless the violation of the NC was malicious, the damages can't be punitive. That's why most employers are counseled to include liquidated damages and state in the agreement that the actual damages are hard to estimate and that everyone agrees the liquidated damage amounts are a good estimate.

Thanks everyone, definitely will do my du diligence but very naive on this type of thing

Whether or not a non-compete is enforceable is irrelevant in most cases. You can be sued for any reason. Even without a non-compete, if an employer has deep pockets and you leave to a competitor or start a competing business, they can sue you for things like stealing trade secrets which is considered a breach of fiduciary duty and lead to legal issues.


Whether you're in the right side of the law does no good if you get sued because you will be out legal fees and the company knows this. You might end up winning but it will come at a cost.