Compliance Stuff

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...

On April 24, 2025, the Florida Legislature passed the Florida Contracts Honoring Opportunity, Investment, Confidentiality, and Economic Growth (CHOICE) Act, significantly expanding the enforceability of noncompete laws in the state. Although Governor DeSantis has not signed the bill into law, it is expected that he will soon, and the law will be effective July 1, 2025 . Employers are encouraged to immediately review their noncompete agreements and existing practices in light of the bill’s major additions to the current legal landscape . Background In Florida, employers commonly enter into noncompete/nonsolicitation agreements with their employees to protect their trade secrets, confidential information, and relationships with prospective or existing customers. Such agreements are governed under section 542.334, Florida Statutes, which provides a list of factors that courts may consider in evaluating the agreement’s enforceability. To enforce a restrictive covenant agreement, employers...