News & Analysis as of

Non-Compete Agreements Texas

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... more +
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 -
Haynes Boone

Texas Noncompete Law for Physicians, Healthcare Workers Takes Effect September 2025

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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

Bradley Arant Boult Cummings LLP

New Healthcare Practitioner Non-Compete Provisions Effective September 1, 2025

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

Fisher Phillips

New Texas Bill Expands Limitations on Non-Competes for Healthcare Employers: What You Can Do to Prepare

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A new law in Texas will cause a seismic shift in the scope and enforceability of non-competes for healthcare professionals. SB1318, which takes effect on September 1, expands protections currently afforded only to physicians...more

Littler

Texas Makes Changes to Requirements for Health Care Provider Noncompetes and Limits Confidentiality Agreements Related to Sexual...

Littler on

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

Hendershot Cowart P.C.

Texas Senate Bill 1318: New Non-Compete Rules for Physicians, Dentists, Nurses & PAs

Hendershot Cowart P.C. on

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

Alston & Bird

Major Changes Coming to Health Care Noncompetes in Texas

Alston & Bird on

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

FordHarrison

Changes To Texas Noncompete Rules for Physicians and Certain Other Healthcare Providers Effective September 1, 2025

FordHarrison on

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

Sheppard Mullin Richter & Hampton LLP

Texas Enacts Massive Reforms to Healthcare Provider Non-Competes

Beginning September 1, 2025, Texas will significantly narrow the permissible scope of non-compete agreements with certain healthcare employees. The legislation, Senate Bill 1318 (“SB 1318” codified in Tex. Bus. Com. Code §...more

McDermott Will & Schulte

Florida expands rules favoring noncompetes while other states limit them further

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

Epstein Becker & Green

Texas Amends Restrictive Covenant Laws for Healthcare Providers

As state legislatures continue to reshape the landscape of restrictive covenants in the wake of federal uncertainty, Texas is one of the latest to amend its existing laws governing non-compete agreements for healthcare...more

Littler

Texas Governor Signs Host of Bills Impacting Employment

Littler on

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

Foley & Lardner LLP

Physician Noncompetes: Texas Restrictions Apply to Dentists, Physicians’ Assistants, and Nurses 

Foley & Lardner LLP on

On June 20, 2025, Texas Governor Greg Abbott signed into law Senate Bill 1318 (SB 1318), which will further restrict noncompete agreements for health care professionals in Texas, starting September 1, 2025. Most notably, SB...more

McGuireWoods LLP

Texas Further Restricts Healthcare Non-Compete Agreements

McGuireWoods LLP on

Texas has taken another significant step in limiting non-compete agreements within the healthcare sector. On June 20, 2025, Gov. Greg Abbott signed Senate Bill 1318 (“SB 1318”), which amends and adds new sections to the...more

Bass, Berry & Sims PLC

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

Bass, Berry & Sims PLC on

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

Bracewell LLP

Texas SB 1318: Changes to Healthcare Non-Competes Effective September 1, 2025

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Healthcare employers in Texas face new requirements for non-competition agreements following the passage of Senate Bill 1318. The Texas Legislature passed this legislation on May 28, 2025, and on June 20, 2025, Governor...more

Clark Hill PLC

Texas enacts sweeping changes to noncompete agreements for healthcare providers

Clark Hill PLC on

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

Katten Muchin Rosenman LLP

5 Things to Know About Senate Bill 1318: Navigating New Non-Compete Restrictions for Healthcare Practitioners in Texas

On June 20, 2025, Texas Governor Greg Abbott signed into law Senate Bill 1318 (“SB 1318”), which amends Texas Business & Commerce Code Section 15.50(b) to impose new limitations on physician non-competes. SB 1318 also adds a...more

Jackson Lewis P.C.

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

Jackson Lewis P.C. on

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

Jackson Walker

Governor Abbott Signs SB 1318, Instituting Limitations on Covenants Not to Compete of Physicians, Dentists, Physician Assistants,...

Jackson Walker on

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

Husch Blackwell LLP

New Texas Law Will Significantly Reshape Non-Competes in Healthcare: What Employers and Providers Need to Know About SB 1318

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Texas has enacted Senate Bill 1318 (SB 1318), which brings major changes to the state’s noncompete for healthcare professionals. Effective September 1, 2025, the new law extends protections that once applied only to...more

Polsinelli

Texas Noncompete Shakeup: New Frontier for Health Care Practitioners

Polsinelli on

Sweeping changes to noncompete covenants are set to take effect on September 1, 2025, for health care employers in Texas. These changes stem from recent amendments to Texas’ noncompete statute....more

Seyfarth Shaw LLP

Lone Star Limitations – Texas Further Narrows the Use of Non-Competes with Medical Professionals

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Texas imposes new limits on non-compete agreements with licensed physicians and health care professionals that takes effect September 1, 2025....more

Hendershot Cowart P.C.

Are Non-Compete Agreements Banned in Texas?

Last year in April, the Federal Trade Commission (FTC) published a rule to ban most non-compete agreements nationwide. Within hours the rule was challenged in courts across the country, and after months of federal litigation...more

Epstein Becker & Green

Texas Joins List of Legislatures Seeking to Ban Noncompete Agreements

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After the nationwide injunction barring the Federal Trade Commission (FTC) Noncompete ban, we reported our anticipation that state legislatures would likely introduce legislation restricting the use of noncompetes....more

Perkins Coie

Texas Lawmaker Introduces Bill To Ban Noncompete Agreements

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Texas Representative Christina Morales (D) introduced Texas House Bill 4067 (HB 4067), which seeks to prohibit most noncompete agreements in the state of Texas, on March 7, 2025.  This bill, if enacted, would broadly restrict...more

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