Mutual NDA Template for Texas

Yes, but with requirements. Under Texas Business & Commerce Code § 15.50, a non-compete must be ancillary to an otherwise enforceable agreement (like an NDA or employment agreement) and be reasonable in scope, duration, and geography. Texas courts will reform overly broad provisions rather than void them.

The Texas Uniform Trade Secrets Act (TUTSA), adopted in 2013, is codified in Civil Practice & Remedies Code Chapter 134A. It provides the primary statutory framework for trade secret protection in Texas, defining trade secrets, establishing misappropriation standards, and providing for injunctive relief and damages.

Under TUTSA, the statute of limitations is three years from the date the misappropriation is discovered or should have been discovered. Under the federal DTSA, the limitation is also three years. It is important to act promptly when you suspect a breach.

Texas does not mandate specific NDA language, but best practices include clearly defining confidential information, specifying the purpose of disclosure, setting reasonable time limits, and including the DTSA whistleblower immunity notice. For NDAs with non-compete provisions, ensuring the ancillary agreement requirement is met is essential.