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Wednesday, November 26, 2025

Texas Amends Restrictive Covenant Laws for Healthcare Providers - The National Law Review

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:

  1. 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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