2025 Texas Statutes
Business & Commerce Code
Title 2 - Competition and Trade Practices
Chapter 15 - Monopolies, Trusts and Conspiracies in Restraint of Trade
Subchapter E. Covenants Not to Compete
Section 15.501. Covenants Not to Compete Against Health Care Practitioners
Sec. 15.501. COVENANTS NOT TO COMPETE AGAINST HEALTH CARE PRACTITIONERS. (a) In this section, "health care practitioner" means:
(1) a person licensed by the State Board of Dental Examiners to practice dentistry in this state;
(2) a person licensed under Chapter 301, Occupations Code, to engage in professional or vocational nursing; or
(3) a physician assistant licensed under Chapter 204, Occupations Code.
(b) A covenant not to compete relating to the practice of dentistry or nursing, or practice as a physician assistant, as applicable, is not enforceable against a health care practitioner unless the covenant:
(1) provides for a buyout of the covenant by the health care practitioner in an amount that is not greater than the practitioner's total annual salary and wages at the time of termination of the practitioner's contract or employment;
(2) expires not later than the one-year anniversary of the date the contract or employment has been terminated;
(3) limits the geographical area subject to the covenant to no more than a five-mile radius from the location at which the health care practitioner primarily practiced before the contract or employment terminated; and
(4) has terms and conditions that are clearly and conspicuously stated in writing.
Added by Acts 2025, 89th Leg., R.S., Ch. 816 (S.B. 1318), Sec. 2, eff. September 1, 2025.
