Changes To Texas Noncompete Rules for Physicians and Certain Other Healthcare Providers Effective September 1, 2025
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. Effective September 1, 2025, the statute requires physician noncompetes to contain a strict duration, geographic scope, and buyout terms to be enforceable, and poses additional restrictions for noncompetes with dentists, nurses, and physician assistants. BEFORE THE CHANGES Existing Texas law treats physician noncompetes as a distinct category. Under the Texas Business & Commerce Code 15.50(b), a physician covenant is enforceable only if it meets a strict criteria, in addition to the reasonableness standard that applies generally to all Texas noncompetes. Before this change, physician noncompetes in Texas were only enforceable if they: allowed the physician access to a list of the patients seen or treated within one year from the physician’s t...