Takeaways
- SB 1318 would expand non-compete limitations to include physicians, dentists, nurses, and physician assistants.
- Restrictive covenants would be limited to one year in duration and a five-mile geographic scope.
- If enacted, the law would take effect September 1, 2025, and apply only to new or renewed agreements, prompting employers to review and revise their current contracts.
A significant proposal has been introduced in the Texas Legislature that would limit non-compete agreements for physicians, dentists, nurses, and physician assistants in Texas. Senate Bill 1318 (SB 1318), authored by Senator Charles Schwertner, and its companion House Bill 4504 (HB 4504), authored by Representative Greg Bonnen, seek to balance employer protections with workforce mobility and patient care.
For healthcare employers, the legislation—if passed—would require substantial changes to new non-compete contracts in Texas.Continue Reading Texas May Soon Reshape Non-Competes for Healthcare Workers: What Employers Need to Know