News & Analysis as of

Restrictive Covenants Texas

Haynes Boone

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

Haynes Boone on

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

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

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

Bracewell LLP

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

Bracewell LLP on

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

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

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

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

Epstein Becker & Green on

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

Hendershot Cowart P.C.

Timeline: What Happens After Breaking a Non-Compete Agreement in Texas

Hendershot Cowart P.C. on

Responding to a Non-Compete Violation - When an employer discovers a potential non-compete violation, they generally react within 1-4 weeks, though this can be shorter if the violation poses an immediate competitive threat....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

Kerr Russell

FTC’s Ban on Covenants Not to Compete Remains on Hold

Kerr Russell on

The legal arguments advanced in these court cases mainly concern whether the FTC has the statutory authority to enact such a ban. Shortly before the September 4, 2024 effective date of FTC’s ban on covenants not to compete,...more

Cranfill Sumner LLP

FTC Appeals Order Striking Down Noncompete Ban

Cranfill Sumner LLP on

On October 18, 2024, the Federal Trade Commission (FTC) appealed to the Fifth Circuit a Texas federal court’s decision to strike down the FTC’s nationwide noncompete ban. This comes hot on the heels of the FTC’s September 24,...more

Spilman Thomas & Battle, PLLC

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

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

Patterson Belknap Webb & Tyler LLP

Court Blocks FTC Rule Banning Almost All Worker Non-Compete Deals

A federal court has issued a nationwide injunction blocking enforcement of the Federal Trade Commission’s (“FTC”) new rule that would ban nearly all non-competition (“non-compete”) deals. The rule, issued on April 23, 2024...more

Pillsbury Winthrop Shaw Pittman LLP

District Court Ruling Bars Federal Trade Commission Non-Compete Rule for the Near Term

With further proceedings anticipated, and in light of the numerous state law restrictions on non-competes, employers should continue to act with caution when presenting employees with non-compete agreements. On August 20,...more

Bracewell LLP

Texas District Court Sets Aside FTC Non-Compete Ban: What Employers Should Consider

Bracewell LLP on

The Federal Trade Commission’s (FTC) Non-Compete Rule, which was scheduled to become effective on September 4, 2024, was set aside last month by US District Judge Ada Brown of the Northern District of Texas in Ryan LLC v....more

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