Is Texas a Right to Work State?
Not infrequently, an employee who has signed a covenant not to compete will confidently explain to me that, "Noncompete agreements are not enforceable in Texas, because Texas is a 'right to work' state." Often, the employee's conviction has been confirmed by a family member or friend, and sometimes even by a lawyer who should know better.
The truth is, Texas is a right to work state. However, "right to work" means that a person can work in Texas without having to belong to a labor union. It has absolutely nothing to do with the enforceability of noncompete agreements.
As is pointed out throughout this blog, Texas courts in recent years have become increasingly pro--enforcement when it comes to covenants not to compete. The test for the enforceability of a noncompete agreement (i.e., that the covenant not to compete be "ancillary to an otherwise enforceable agreement") has lost much of its meaning in recent years. Thus, not only does the fact that Texas is a right to work state not insulate from liability a person who has signed a covenant not to compete, the legal landscape in Texas with respect to noncompete agreements is more dangerous than ever for employees.
So, the next time someone tells you that because Texas is a right to work state, you have nothing to fear from the noncompete agreement that you signed, you need a second opinion.
