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Bill

SB 1318

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

89th Legislature (2025) Introduced by Greg Bonnen and 3 co-sponsors

Texas law restricts non-compete agreements for physicians and healthcare practitioners, enhancing job mobility and potentially expanding healthcare access starting September 1, 2025.

Effective on 9/1/25
#business&commerce--general(i0050) #dentists&dentistry(s0158) #healthcareproviders(i0387) #labor--general(i0500) #nurses&nurseaides(s2704) #occupationalregulation--healthoccupations(i0540) #physicianassistants(s0081) #physicians(s1282)
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Bill Summary · SB 1318

Legislative bill overview

SB 1318 restricts the enforceability of non-compete agreements (covenants not to compete) for physicians and certain healthcare practitioners in Texas. The bill limits how long these agreements can prevent healthcare workers from practicing in the same geographic area after leaving their employer, effective September 1, 2025.

Why is this important

Non-compete clauses can significantly restrict where doctors and healthcare providers can work after leaving a practice or hospital, potentially limiting patient access to care and reducing job mobility for healthcare professionals. This bill addresses whether physicians should face geographic and temporal restrictions that may not apply to other professionals, balancing employer interests against workforce mobility and healthcare access.

Potential points of contention

  • Duration and scope disputes: Disagreement over what constitutes a "reasonable" time period and geographic radius—too strict may harm practices losing providers, too lenient may offer no protection to employers
  • Healthcare market effects: Concerns that eliminating restrictions could increase provider mobility in rural areas, potentially destabilizing smaller practices, versus arguments it improves access by allowing doctors to relocate
  • Competitive fairness: Questions about whether physicians should receive different treatment than other professionals with non-competes, or whether this creates equity across healthcare workforce tiers

Compiled from official sources — confirm details with the bill’s official record.

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