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As previously noted, a sweeping change to Texas noncompete law is coming Sept. 1, 2025, reshaping employment agreements for physicians and other healthcare practitioners. ...more
On June 20, 2025, Texas enacted SB 1318, modifying the criteria for enforceable healthcare practitioner non-competes in the Texas Business and Commerce Code. The modifications (1) limit the scope of enforceable physician...more
Noncompete Agreement Changes for Physicians and Other Health Care Professionals - Texas has long had a special set of provisions for physicians in the state statute governing covenants not to compete (Tex. Bus. & Com. Code...more
As of July 1, 2025, Maryland prohibits or restricts non-compete provisions for nearly all healthcare professionals. The prohibition applies to individuals: (1) required to be licensed under the Maryland Health Occupations...more
Our Health Care Group examines the new Texas law that restricts the use of noncompete clauses in physician and other health care practitioner employment contracts beginning September 1....more
On June 20, 2025, Texas Senate Bill 1318 was signed into law, introducing new restrictions on noncompete agreements entered with physicians licensed by the Texas Medical Board and other healthcare practitioners in Texas....more
As jurisdictions around the country continue to impose limitations—or outright bans—on restrictive covenants, Florida is taking a decidedly different approach....more
2025 has been a busy year for new state legislation on employee restrictive covenant agreements, particularly in the healthcare sector. While several states have pushed forward new legislation restricting employee restrictive...more
Unlike states that ban them entirely, Texas law permits physician noncompete agreements restricting when and where licensed physicians can practice medicine after departure from their employer so long as they meet specific...more
Colorado recently enacted Senate Bill 25-083, significantly revising the rules governing noncompete and nonsolicit agreements in the state for those involved in the practice of medicine and other healthcare professions, as...more
Biennially, the Texas Legislature convenes from mid-January to June, to introduce, debate, and pass new laws impacting Texans across the state. Texas Governor Greg Abbott’s deadline to sign pending bills passed on June 22,...more
Following a trend in recent years, state legislatures continue to ban or curtail the use of non-compete provisions and other restrictive covenants in employment agreements with physicians and other healthcare providers. The...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
Texas Governor Greg Abbott has signed a bill that imposes more limitations on employers’ covenants not to compete with physicians and extends similar restrictions to agreements with other healthcare practitioners, including...more
In the wake of the nationwide injunction last year barring the Federal Trade Commission’s (FTC) attempted Noncompete Ban, states have continued to legislate the scope of enforceable restrictive covenants, especially...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
Two years ago, a bill that would have effectively gutted New York non-compete law made it as far as the Governor’s desk where Gov. Kathy Hochul (D) vetoed it, much to the relief of the New York business community. However,...more
The Florida Legislature recently passed a bill, called the CHOICE Act, that augments Florida’s laws governing restrictive covenants to make it significantly easier for employers to enforce two new types of noncompete...more
Effective July 1, 2025, the second phase of Maryland’s restrictions on non-compete agreements and conflict of interest provisions for healthcare professionals will go into effect, targeting employers who provide direct...more
Following a nationwide trend for physician mobility, Indiana’s legislature has passed another amendment to the state’s 2020 Physician Non-Compete Statute (Ind. Code § 25-22.5-5.5), which limits the enforceability of...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
It has been a busy year for health care noncompete legislation. Multiple states have enacted legislation, set to take effect in 2025, banning or limiting noncompete agreements for physicians and other health care workers....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
In March of this year, Arkansas Governor Sarah Huckabee signed into law a bill titled “An Act To Clarify That a Covenant Not to Compete Agreement Is Unenforceable for Certain Licensed Medical Professionals" (the “Act”)....more