HB 4067 Texas House · 89th Legislature (2025)

Relating to prohibiting covenants not to compete against workers.

HB 4067 prohibits most employment contracts from including "covenants not to compete" that restrict workers from seeking new jobs or starting businesses after leaving their current role. The bill directly affects most Texas workers by banning these restrictions, but exempts "senior executives" who earned at least $151,164 in the preceding year and held a "policy-making position" (such as top leadership roles). Key provisions define terms like "covenant not to compete," "policy-making position," and "senior executive" to clarify who is covered and who is exempt. This bill creates new sections in Texas business law to replace existing non-compete rules, focusing on protecting lower- and mid-level workers while allowing restrictions for high-earning executives.
Bill status in committee 1 of 4 stages cleared
Introduction
Mar 2025
Committee Review
Floor Vote
Governor
Introduced Mar 27, 2025 Last action Mar 27, 2025
Floor votes

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Full legislative history

Actions timeline

Total actions
3
Key actions
0
Committee
1
Mar 27, 2025
Committee
Referred to s/c on Workforce by Speaker
lower
Mar 27, 2025
Introduced
Read first time
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Christina Morales
Christina Morales
DDemocratic
TX
145