On June 20, 2025, Texas enacted SB 1318, modifying the criteria for enforceable healthcare practitioner non-competes in the Texas Business and Commerce Code. The modifications (1) limit the scope of enforceable physician non-competes; and (2) expand non-compete protections to healthcare practitioners in addition to physicians. Notably, the changes set forth in SB 1318 take effect September 1, 2025, and will apply only to a covenant not to compete entered into or renewed on or after this effective date. Further, SB 1318 did not amend or alter that the restrictions on a physician non-compete do not apply to a physician's business ownership interest in a licensed hospital or licensed ambulatory surgical center.
