I'm a software engineer in Texas making $180K. I signed a non-compete when I joined 3 years ago that says I can't work for any competitor within 200 miles for 2 years after leaving. I have an offer from a direct competitor in Austin for $240K.
I heard the FTC was going to ban all non-competes but that got blocked? What's the current state of things?
Ngl correct — the FTC's nationwide ban was vacated by a federal court in August 2024. Non-competes are still governed by state law.
In Texas if that makes sense, non-competes are enforceable IF they're ancillary to an enforceable agreement and the restrictions are reasonable in scope, geography, and duration. Your 200-mile radius for 2 years might be challengeable as overbroad, especially for a software engineer where geography is less relevant.
Key factors Texas courts consider: Did you receive separate consideration for the non-compete? Did you have access to true trade secrets? Is the geographic scope reasonable for the industry?
I'm in a similar field. My attorney told me that Texas courts often narrow non-competes rather than void them entirely. So even if yours is partially enforceable, a court might reduce it to 1 year / 50 miles instead of throwing it out completely.
I didn't receive any separate consideration beyond my regular employment. Does that matter in Texas?
It can. Texas requires non-competes be ancillary to an "otherwise enforceable agreement" — meaning there must be consideration beyond just employment. If you received stock options, a bonus, or access to confidential information in exchange for signing, that's usually enough. If you signed on your first day as a condition of employment with nothing extra, the enforceability is weaker.
Bottom line: consult a TX employment attorney before accepting the new offer. Many companies don't actually enforce these — they're more of a deterrent than a legal weapon.
From the employer side: most companies won't enforce non-competes against individual contributors unless you're taking clients or trade secrets. The cost of litigation vs. the benefit of stopping one engineer rarely makes financial sense. They enforce against executives and salespeople with client relationships.
Also check if your new employer has a legal team that deals with non-competes. Many large tech companies have standard procedures to assess the risk and sometimes send a letter to your old employer. Google, Apple, and Microsoft all have teams that handle incoming employees with non-competes.
Update: Spoke with a TX attorney. She reviewed the non-compete and said it's likely unenforceable because (1) I received no separate consideration, (2) 200 miles is unreasonable for remote-capable software work, and (3) the scope is overly broad ("any competitor"). She drafted a letter to my current employer informing them of my departure. I accepted the new offer. No pushback from old employer.
Document everything. Emails, texts, pay stubs - all of it. You'll need this if it goes to litigation.
Check if your state has specific protections for this. Laws vary significantly.