Bill > SB1318

This bill modifies Texas law regarding non-compete agreements for physicians and other health care practitioners by establishing more specific and protective restrictions. For physicians, the bill requires non-compete agreements to include several key provisions: they must allow access to patient lists and medical records, provide a buyout option for the physician that does not exceed their total annual salary, permit continuing care for patients during acute illnesses, be limited to a one-year duration, restrict the geographical area to within five miles of the physician's previous practice location, and have terms clearly stated in writing. Additionally, the bill extends similar protections to other health care practitioners like dentists, nurses, and physician assistants, making non-compete agreements unenforceable unless they meet specific criteria. The bill also clarifies that a non-compete agreement becomes void if a physician is involuntarily discharged without good cause, which is defined as a reasonable basis for termination directly related to the physician's conduct or performance. These changes aim to provide more flexibility and fairness for medical professionals when changing employment, ensuring that non-compete agreements do not overly restrict their ability to practice medicine. The bill will apply only to non-compete agreements entered into or renewed on or after its effective date of September 1, 2025.

Health and Social Services

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1318