TX · EMPLOY-CONTR · Updated July 2026 · Free
Texas Employment Contract
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Texas at a glance: Non-Compete Enforceability: Enforceable if reasonable (Tex. Bus. & Com. Code § 15.50) · Wage Payment Frequency: At least semi-monthly for non-exempt · Governing Law: Texas Labor Code / Common Law
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Overview
Employment Contracts in Texas
Texas is a strongly at-will state, and employment contracts are governed by common law and the Texas Labor Code.
Texas allows non-compete clauses if they are ancillary to an otherwise enforceable agreement (such as an agreement providing trade secrets or specialized training) and are reasonable in time, geography, and scope (Texas Business & Commerce Code § 15.50).
Key Facts
Texas Employment Contract — Quick Reference
| Requirement | Texas Rule |
|---|---|
| Non-Compete Enforceability | Enforceable if reasonable (Tex. Bus. & Com. Code § 15.50) |
| Wage Payment Frequency | At least semi-monthly for non-exempt |
| Governing Law | Texas Labor Code / Common Law |
Legal Requirements
Texas Legal Requirements
- Non-competes must be signed in exchange for "valuable consideration" (such as confidential business information).
- Employers must pay wages semi-monthly for hourly employees and monthly for exempt employees under the Texas Payday Law.
Governing Laws
Texas Governing Laws
Tex. Bus. & Com. Code § 15.50
Enforceability of Covenants Not to Compete
Outlines requirements for valid non-compete clauses in Texas.
Tex. Lab. Code § 61.011
Texas Payday Law
Regulates wage payment frequencies, methods, and dispute processes.
Read the full text of these laws at Cornell Law School's Texas legal resources or your state legislature's official website.
Questions & Answers
Texas Employment Contract — Frequently Asked Questions
What makes a non-compete valid in Texas?
It must be reasonable in geographical area (usually limited to counties where you did business), duration (typically 1 to 2 years), and the scope of activities restricted.