Bill > HB4504

This bill modifies Texas law regarding non-compete agreements (contracts that restrict an employee from working for a competitor) specifically for physicians and other health care practitioners. For physicians, the bill establishes several key requirements for non-compete agreements, including: limiting the geographical area to a five-mile radius from the physician's primary practice location, ensuring the agreement expires within one year of contract termination, providing patient access to medical records, and allowing a "buyout" option where the physician can end the agreement by paying an amount not exceeding their annual salary. The bill extends similar protections to other health care practitioners like dentists, nurses, and physician assistants. Importantly, the bill renders non-compete agreements 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. The changes will apply only to non-compete agreements entered into or renewed on or after the bill's effective date (September 1, 2025), with existing agreements remaining under previous legal standards. The bill aims to provide more flexibility and fairness for medical professionals when changing employment, ensuring they are not unreasonably restricted from practicing their profession.

Health and Social Services

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4504