Author Headshot

I'm Robert Wood, a Texas litigation attorney. I have handled matters involving Texas non-compete agreements for nearly 30 years. I use this blog to help Texas employers and workers understand the common misconceptions surrounding the enforcement of non-competes in Texas. If you have questions, please don’t hesitate to shoot me a message or give me a call at 469-754-2812.

Are noncompete agreements in Texas enforceable if the employee is terminated?

April 26, 2020 / By Robert Wood

I was let go from my job: Is my non-compete still enforceable?

This is a question I have heard a lot during the COVID-19 pandemic and resulting massive job losses: My employer fired me. That means my noncompete goes away, right?

Not exactly.

Non Compete Agreement Texas If Terminated There is no rule in Texas stating that if an employee is terminated, rather than quits, a noncompete agreement that he signed goes away. The reason for this is simple: the consideration for the noncompete isn’t mere employment.

If a noncompete is enforceable, it’s not so because the employer hired the employee. Rather, it’s enforceable for other reasons, such as the employer sharing trade secrets with the employee. Thus, the fact that the employer fires the employee doesn’t mean the agreement goes away.

Being fired can complicate the employer’s argument that your noncompete must be enforced

That said, the fact that the employee was fired may carry some weight in court. An employer who fires an employee may have a tough time subsequently contending, “This guy is so important, and he knows so much about my business, that he must be prevented from competing.”

So, technically speaking, the fact that the employee was fired doesn’t mean that the employer can’t enforce the noncompete. Practically speaking, though, it may complicate an employer’s attempt to do so.

Of course, as with many things in this area of law, there is no bright-line rule. Each situation must be judged on its own unique set of facts.

Were you let go from your job but are still bound by a non-compete?
Complete the short form below to get answers about your options from Texas attorney Robert Wood.


1 Star2 Stars3 Stars4 Stars5 Stars
6 votes, average: 3.83 out of 5

About the Author

Robert Wood has been a Texas trial lawyer since 1993. During that time, he has represented small, mid-sized, and Fortune 100 companies in business and employment litigation matters all over Texas and the United States. He has also advised and represented hundreds of individuals in employment litigation matters. Read more about Robert Wood