Enforceability of Non-Compete Agreements for Med Spa Employees in Texas

In Texas, non-compete agreements are generally disfavored as restraints on trade, but they are enforceable under certain circumstances. For med spa employees, who often include licensed professionals such as nurses, physician assistants, and aestheticians, non-compete agreements can play a crucial role in protecting business interests. However, the enforceability of non-compete agreements for med spa employees hinges on compliance with specific legal requirements.

Legal Framework in Texas:

Texas law governs non-compete agreements under the Texas Business and Commerce Code § 15.50. To be enforceable, a non-compete agreement must:

• be ancillary to or part of an otherwise enforceable agreement, such as an employment or independent contractor agreement;

• contain reasonable limitations as to time, geographic area, and scope of activity to be restrained; and

• be no greater than necessary to protect the legitimate business interests of the employer.

Application to Med Spa Employees:

Ancillary to an Enforceable Agreement

A non-compete clause must be tied to a legitimate employment agreement that includes consideration—such as access to confidential information, specialized training, or client relationships. In a med spa setting, providing access to proprietary protocols, patient lists, or marketing resources may constitute sufficient consideration.

Reasonable Restrictions

• Time: Texas courts have upheld non-compete periods ranging from six months to two years, depending on the role and industry. For med spa employees, 6–12 months is typically seen as reasonable.

• Geographic Scope: The restriction must be limited to the geographic area where the employee actually worked or where the med spa has a legitimate business interest. A blanket statewide restriction is unlikely to hold up unless the business has operations across Texas.

• Scope of Activity: The restriction must be narrowly tailored to prevent unfair competition—such as soliciting former clients or using proprietary techniques—not a blanket prohibition on working in the industry.

Legitimate Business Interests

Med spas often invest heavily in building their brand, client base, and proprietary techniques. Protecting these interests—especially from employees who might leave to work for or start a competing med spa—is a valid concern. Courts are more likely to enforce non-competes that aim to protect confidential business information, patient relationships, or specialized training.

Special Considerations for Medical Professionals:

While Texas law does not prohibit non-competes for medical professionals outright, there are additional requirements when physicians are involved, such as the need for a buyout provision in the agreement (Texas Business & Commerce Code § 15.50(b)). This may be relevant if the med spa employs or contracts with a licensed physician as medical director.

Enforceability in Practice:

Whether a non-compete is enforceable depends on the specific language and context. Courts may "blue pencil" overly broad agreements—modifying rather than voiding them—or may strike them down entirely if they are found to be unreasonable.

Practical Tips for Med Spas:

• Use clear, specific language for time, geography, and scope.

• Limit the restriction to what is necessary to protect proprietary business interests.

• Document the consideration provided (e.g., training, confidential access).

• Consult legal counsel when drafting agreements, especially for roles involving licensed medical professionals.

Conclusion on Enforceability of Non-Compete Agreements for Med Spa Employees

Non-compete agreements can be enforceable in Texas, including for med spa employees, if they are reasonable and carefully drafted. Employers must balance the need to protect their business with the legal standards that safeguard an employee’s right to work. Given the complexities and potential pitfalls, customized legal advice is essential in crafting enforceable non-competes in the med spa industry.

Feel free to reach out if you need more specific information or further clarification.

Weitz Morgan is a leading law firm in Texas in providing comprehensive advice and guidance to med spas. With a deep understanding of the unique challenges and complexities faced by this rapidly growing industry, our team of experienced attorneys is dedicated to helping med spas navigate the legal landscape successfully.

We recognize that med spas operate at the intersection of healthcare and beauty, which necessitates a multifaceted approach to representation. Our firm offers a range of services, including a flat-fee med spa formation package and an outside general counsel subscription, tailored to meet the specific needs of med spas, ensuring compliance, mitigating risks, protecting licenses, and fostering a legally sound business environment.