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Update on the State of Non-compete Restrictions (LaborSpeak)
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
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
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
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
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
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
Texas recently enacted a law that broadens the geographic and temporal restrictions on noncompete agreements with healthcare practitioners. The law will apply to physicians, nurses, physician assistants, and dentists....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
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
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
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
Last month we reported on physician and healthcare noncompete laws enacted in 2025. Shortly after the article was posted, another state joined the ranks: Indiana....more
The Wyoming State Legislature has adopted a statute limiting the use of noncompete restrictions for Wyoming workers. Importantly, the Wyoming statute is not a categorical ban on noncompetes and protects the validity of these...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
With the FTC Ban on non-competes essentially dead in the Courts of Appeal, various states and agencies have taken up the mantle to further limit or expand the use of restrictive covenants for certain populations in 2025....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
Continuing a nationwide trend, three states recently enacted new legislation further restricting the enforceability of non-compete provisions in employment agreements. Starting in July, these new regulations are set to take...more
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
Employers in Wyoming will soon be limited in their use of noncompete agreements under a newly enacted law that makes the state the latest of a growing number of states to restrict noncompete agreements in the employment...more