Relating to restrictions on covenants not to compete for physicians and certain health care practitioners.
HB 4504 restricts non-compete agreements for physicians and certain health care practitioners, such as dentists, in Texas. To be enforceable, these agreements must expire within one year of employment termination, cover no more than a five-mile radius, allow physicians to access patient lists and medical records (with patient consent) at a reasonable fee, and include a buyout option for no more than the physician's annual salary. The bill also prohibits preventing physicians from continuing care for patients during acute illnesses after employment ends. This law directly affects healthcare professionals entering employment contracts with non-compete clauses.
Bill status
passed
3 of 5 stages cleared
Introduction
Apr 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
Governor
Introduced Apr 3, 2025
Last action May 15, 2025
Maddy AI version diff · 1 comparison
What changed between versions
Introduced
→
Engrossed
·
5 edits
·
May 14, 2025
MODERATE
This bill updates Texas law governing non-compete agreements for physicians and other healthcare practitioners. It clarifies that non-competes for physicians are void if they result from involuntary discharge without good cause, adds specific requirements for healthcare practitioners including dentists and nurses, and modifies the definition of 'practice of medicine' to exclude administrative roles.
Scope change
The bill expands the scope of protected healthcare practitioners to include dentists, nurses, and physician assistants, while adding special protections for physicians regarding involuntary termination.
ELIGIBILITY
Added new subsection (b-1) to clarify that managing medical services in an administrative capacity does not count as practicing medicine for non-compete purposes.
REQUIREMENT
Added new subsection (d) making physician non-compete agreements void and unenforceable if the physician is involuntarily discharged without good cause.
Modified Section 15.50(b) to include dentists, nurses, and physician assistants under the same non-compete restrictions as physicians.
Updated Section 15.501(b)(3) to specify that the five-mile geographic limit is measured from where the practitioner primarily practiced before termination.
Added new Section 15.501(b)(4) requiring that non-compete terms be clearly and conspicuously stated in writing.
Floor votes · House May 14, 2025
How they voted
141–0
Passed · 2 other
Total votes 143
May 14, 2025
D
Democratic59
100% Yea
R
Republican84
97% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
28
Key actions
8
Committee
7
Amendments
2
May 15, 2025
Committee
Referred to Health & Human Services
upper
May 15, 2025
Introduced
Read first time
upper
May 14, 2025
Introduced
Received from the House
upper
May 14, 2025
Lower · Passed
Passed
lower
May 13, 2025
Lower · Passed
Passed to engrossment as amended
lower
May 13, 2025
Lower · Passed
Amended
lower
May 6, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 5, 2025
Lower · Passed
Committee report distributed
lower
May 1, 2025
Lower · Passed
Reported favorably as substituted
lower
Apr 28, 2025
Lower · Passed
Left pending in committee
lower
Apr 28, 2025
Lower · Passed
Testimony taken/registration(s) recorded in committee
lower
Apr 3, 2025
Committee
Referred to Public Health
lower
Apr 3, 2025
Introduced
Read first time
lower
2 primary · 0 co-sponsors
Sponsors
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