News & Analysis as of August 14, 2025

Healthcare

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

States Continue to Limit Restrictive Covenants for Health Care Professionals

Littler on 6/30/2025

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

Texas Caps Physician Non-Compete Buyouts and Adds New Limits Under SB 1318

Bass, Berry & Sims PLC on 6/27/2025

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

New Restrictions on Non-Compete Agreements Coming to Colorado

Polsinelli on 6/26/2025

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

Texas SB 1318 Tightens Physician Non-Compete Rules, Extends Restrictions to Other Healthcare Practitioners

Jackson Lewis P.C. on 6/26/2025

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

Change Is Coming: Texas Healthcare Provider Non-Competes Subject to New Strict Limits

Holland & Knight LLP on 6/24/2025

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

Montana, Indiana, Colorado, Oregon, and Utah Amend Restrictive Covenant Laws for Healthcare Providers

Epstein Becker & Green on 6/18/2025

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

Colorado Changes Noncompete Statute Again

Brownstein Hyatt Farber Schreck on 5/12/2025

In the recently adjourned legislative session, Colorado lawmakers passed substantial changes to the state’s noncompete law. SB 83, if enacted, is poised to have a significant impact on the state’s health care industry and...more

Physician and Health Care Noncompete Law: New Legislation in 2025

Foley & Lardner LLP on 5/6/2025

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

Coming Soon: Changes to State Noncompete Laws in Virginia, Arkansas, and Wyoming

ArentFox Schiff on 4/10/2025

Noncompete provisions continue to be governed by a constantly changing patchwork of state level legislation. In general, recent laws tend to limit their use among low wage earners or individuals in certain professions, such...more

McDermottPlus Check-Up: May 19, 2023

McDermott+ on 5/19/2023

The House and Senate were both in session this week, with significant healthcare activity at the committee level. The House Ways & Means Committee met to discuss healthcare price transparency, and the Ways & Means Health...more

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