TexasSB 131889th Legislature Regular SessionSenateWALLET

Relating to restrictions on covenants not to compete for physicians and certain health care practitioners.

Sponsored By: Greg Bonnen, Suleman Lalani, Charles Schwertner (Republican)

Signed by Governor

Business & Commerce--GeneralHealth Care ProvidersLabor--GeneralOccupational Regulation--Health OccupationsDENTISTS & DENTISTRYNURSES & NURSE AIDESPHYSICIAN ASSISTANTSPHYSICIANS

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Noncompete limits protect more Texas practitioners

Texas limits practice-related noncompetes made or renewed on or after September 1, 2025, for licensed dentists, nurses, and physician assistants. Covered workers include Texas-licensed dentists, professional or vocational nurses, and physician assistants. Agreements must offer a buyout capped at the practitioner’s total annual salary and wages when employment or the contract ends. Restrictions must end within one year and cover no more than five miles from the practitioner’s main practice location before termination. Terms must be clear and easy to notice in writing.

Stronger noncompete protections for Texas physicians

Texas limits medical-practice noncompetes for Texas Medical Board-licensed physicians in agreements made or renewed on or after September 1, 2025. Noncompetes must offer a buyout capped at the physician’s total annual salary and wages when employment or the contract ends. Restrictions must end within one year and cover no more than five miles from the physician’s main practice location before termination. Terms must be clear and easy to notice in writing. A noncompete is void after involuntary discharge without good cause. Good cause means a reasonable basis tied directly to conduct, job performance, or the contract or employment record. Agreements must preserve access to lists of patients seen or treated in the year before termination. With patient permission, physicians must also have access to those patients’ medical records, including copies for a reasonable Texas Medical Board-set fee. After termination, record and list formats cannot be changed unless both parties agree. Agreements must allow continued treatment of a specific patient during an acute illness after termination. These medical-practice rules do not cover managing or directing medical services in an administrative role.

One legal framework governs noncompete disputes

For noncompetes made or renewed on or after September 1, 2025, Texas makes its statutory rules the exclusive legal framework. The law’s enforcement standards, dispute procedures, and remedies replace other law, including common law. This gives parties one framework but limits their ability to rely on other legal rules. Noncompetes must be tied to an otherwise enforceable agreement when made. Their limits on time, location, and work must reasonably protect goodwill or other business interests.

Sponsors & Cosponsors

Sponsors

  • Greg Bonnen

    House

  • Suleman Lalani

    House

  • Charles Schwertner

    Republican • Senate

Cosponsors

  • Kevin Sparks

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 425 • No: 12

Senate vote • 5/28/2025

Record vote

Yes: 0 • No: 0

House vote • 5/23/2025

Record vote

Yes: 126 • No: 12

House vote • 5/22/2025

Record vote

Yes: 142 • No: 0

House vote • 5/22/2025

Record vote

Yes: 141 • No: 0

Senate vote • 4/10/2025

Record vote

Yes: 0 • No: 0

Senate vote • 4/10/2025

Record vote

Yes: 0 • No: 0

House vote • Unknown

Committee vote: Public Health

Yes: 9 • No: 0

Senate vote • Unknown

Committee vote: Health & Human Services

Yes: 7 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House
  2. Signed by the Governor

    6/20/2025House
  3. Sent to the Governor

    6/1/2025House
  4. Signed in the House

    6/1/2025House
  5. Signed in the Senate

    5/31/2025Senate
  6. Reported enrolled

    5/29/2025Senate
  7. Senate concurs in House amendment(s)-reported

    5/29/2025House
  8. Record vote

    5/28/2025Senate
  9. Senate concurs in House amendment(s)

    5/28/2025Senate
  10. Read

    5/28/2025Senate
  11. House amendment(s) laid before the Senate

    5/28/2025Senate
  12. House passage as amended reported

    5/23/2025Senate
  13. Statement(s) of vote recorded in Journal

    5/23/2025House
  14. Record vote (RV#3349)

    5/23/2025House
  15. Passed

    5/23/2025House
  16. Read 3rd time

    5/23/2025House
  17. Statement(s) of vote recorded in Journal

    5/22/2025House
  18. Record vote (RV#3272)

    5/22/2025House
  19. Passed to 3rd reading as amended

    5/22/2025House
  20. Statement(s) of vote recorded in Journal

    5/22/2025House
  21. Record vote (RV#3271)

    5/22/2025House
  22. Amended (1-Bonnen)

    5/22/2025House
  23. Read 2nd time

    5/22/2025House
  24. Placed on General State Calendar

    5/21/2025House
  25. Considered in Calendars

    5/19/2025House

Bill Text

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