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Non-Compete Compliance in 2025: State Trends and Employer Strategies
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10 For 10: Top Compliance Stories For the Week Ending, July 12, 2025
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Multijurisdictional Employers, P2: 2025 State-by-State Updates on Non-Compete/Non-Solicitation Agts
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On June 20, 2025, Texas enacted Senate Bill 1318, ushering in significant reforms to healthcare non-compete agreements. This legislation, which takes effect on September 1, 2025, reshapes how non-compete agreements can...more
In the wake of the Federal Trade Commission’s recently failed attempt to ban non-compete agreements between employers and workers, individual states have once again taken up the mantle of further regulating and limiting their...more
On June 20, Texas Governor Greg Abbott signed Senate Bill 1318 (Amendment) into law, amending Texas Business & Commerce Code Section 15.50(b), which is commonly thought of as the “Texas physician non-compete buyout statute.”...more
Colorado generally prohibits restrictive covenants, except in narrow circumstances. On May 8, 2025, the Colorado Legislature passed Senate Bill 25-083, which imposes three significant new limitations on the use of restrictive...more
On June 20, Gov. Greg Abbott signed into law significant amendments to the Texas Business and Commerce Code, as contained in Senate Bill 1318, that will substantially restrict noncompete agreements for physicians and other...more
On June 20, 2025, Texas Governor Greg Abbott signed into law Senate Bill 1318 (SB 1318), which amends Section 15.50 of the Texas Business and Commerce Code, commonly referred to as the “Texas Covenants Not to Compete Act.” ...more
On June 20, 2025, Texas governor Greg Abbott signed Senate Bill 1318, initiating major changes in the scope and enforceability of non-competition covenants that are commonly included in the sale of a medical practice or other...more
Texas Gov. Greg Abbott on June 20, 2025, signed into law Senate Bill (SB) 1318, which creates greater restrictions on physician non-compete agreements in Texas and, for the first time, extends such restrictions to non-compete...more
Tennessee Governor Bill Lee signed House Bill No. 979 into law on May 21, 2025, enacting significant changes to Tennessee's corporate practice of medicine prohibition. Prior to this law, certain hospital-based physicians –...more
Since the 2022 overhaul of Colorado’s restrictive covenant statute, C.R.S. § 8-2-113, the Colorado legislature has made ongoing amendments to the law which continue the trend of limiting the effectiveness of restrictive...more
Today, Governor Bill Lee signed House Bill No. 979 into law. House Bill No. 979, among other unrelated matters, drastically changes certain laws relating to the corporate practice of medicine in Tennessee. Before this new law...more
The Wyoming State Legislature has adopted a statute limiting the use of noncompete restrictions for Wyoming workers. Importantly, the Wyoming statute is not a categorical ban on noncompetes and protects the validity of these...more
On March 19, 2025, Wyoming passed a new law, SF 107, broadly circumscribing employers’ use of noncompete agreements. Generally, SF 107 broadly prohibits covenants that restrict the right of “any person” to receive...more
When Indiana’s 2025 legislative session concluded on April 25, bills with significant implications for hospitals were approved. This alert addresses one of those bills—Senate Enrolled Act 475 (SEA 475)—which prohibits...more
Wyoming just banned most non-compete agreements (Wyo. Stat. § 1-23-108): starting July 1, 2025, most agreements that restrict workers from working in competitive jobs will be void, absent some exceptions for: High-Level...more
On March 4, 2025, Arkansas Governor Sarah Huckabee Sanders signed into law Senate Bill 139, now Act 232 (the “Act”), which amends the state’s non-compete statute to provide that non-compete covenants that “restrict the right...more