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 workers.
Texas Senate Bill (SB) 1318, which takes effect on September 1, 2025, tightens Texas’ already well-regulated statute by further restricting the enforceability standards for physician non-competes and, for the first time, extends similar restrictions to other licensed healthcare practitioners.
Key Changes to Physician Non-Compete Agreements
In June 2025, Texas Governor Greg Abbott signed SB1318 into law, which, effective September 1, 2025, revises Sections 15.50 and 15.52 of the Texas Business & Commerce Code, and adds a new Section 15.501.
Under the new language, a non-compete is enforceable against a physician licensed by the Texas Medical Board only if it meets all of the following conditions:
- Patient Access, Medical Records, and Continuity of Care
- The physician must have access to a list of patients seen or treated within one year of termination.
- Medical records must be accessible upon patient authorization, and copies must be available for a reasonable fee.
- Access to such records must not require a different format than how the records are normally maintained, unless both parties agree otherwise.
- The covenant must not prohibit a physician from continuing to treat specific patients during the course of an acute illness, even after...
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