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Non-Compete Agreements › Texas › State Labor Laws

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 -
Foley & Lardner LLP

2025 Changes in Texas Employment Laws That Employers Must Comply With

Foley & Lardner LLP on

As we pass the halfway point of 2025, there has already been a flurry of legislative changes and court decisions that have changed the landscape of Texas employment laws. With several of these laws already in effect, and...more

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

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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

Fisher Phillips on

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

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

Sheppard Mullin Richter & Hampton LLP on

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

McDermott Will & Schulte on

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

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

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

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

Husch Blackwell LLP

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

Husch Blackwell LLP on

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

Hendershot Cowart P.C.

Are Non-Compete Agreements Banned in Texas?

Hendershot Cowart P.C. on

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

Perkins Coie

Texas Lawmaker Introduces Bill To Ban Noncompete Agreements

Perkins Coie on

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

Hendershot Cowart P.C.

Legal Alternatives to Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on

Many employees feel trapped by non-compete agreements, but there are legal ways to handle these restrictive employment agreements. Before risking legal action by breaking your agreement, consider these alternatives....more

Hendershot Cowart P.C.

Checklist: Texas Employment Agreements for Out-of-State Employers

Hendershot Cowart P.C. on

Multistate employers with employees in Texas are subject to state laws regarding employment agreements. Whether your business is large or small, specific provisions within your agreements could render your agreements...more

Spilman Thomas & Battle, PLLC

The FTC’s Rule Banning Noncompete Agreements is Dead. Long Live Noncompete Agreements?

Spilman Thomas & Battle, PLLC on

Earlier this year, the Federal Trade Commission (FTC) announced a Final Rule outlawing nearly all noncompete agreements between employers and employees. That Final Rule, however, was overturned at the end of August 2024....more

Brownstein Hyatt Farber Schreck

FTC Noncompete Rule Set Aside by Federal Texas District Court, Will Not Become Effective

Brownstein Hyatt Farber Schreck on

A U.S. District Court judge in Texas has set aside the Federal Trade Commission’s (FTC) controversial noncompete rule, ruling that it will not become effective on Sept. 4 as previously scheduled and cannot be enforced by the...more

Keating Muething & Klekamp PLL

District Court Finds in Favor of FTC, Declines to Issue Injunction

Keating Muething & Klekamp PLL on

The Federal Trade Commission’s (FTC) push to invalidate non-compete agreements for millions of workers gained steam today, courtesy of a ruling out of the Eastern District of Pennsylvania. As noted by this blog, in April of...more

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