If you’re a doctor, nurse, dentist, or physician assistant in Texas, chances are you’ve heard of — or even signed — a non-compete agreement. These are contracts that try to limit where you can work after you leave a job. Employers often use them to keep patients from following a departing provider to a new clinic down the road.

But starting September 1, 2025, Texas is changing the game. A new law (Senate Bill 1318) puts strict limits on what healthcare non-competes can say and how far they can go. If you’ve ever worried, “Can my hospital really stop me from practicing nearby?”, this law gives you more clarity — and more freedom.

What’s Changing?

Here are the biggest takeaways:

One Year Limit
Your employer can’t stop you from practicing for more than 12 months after you leave.
Five Mile Radius
Non-competes can’t cover huge areas anymore. They’re capped at five miles from the clinic or hospital where you mainly worked.
Buyouts Are Affordable
If your contract includes a buyout option (a way to “pay your way out” of the non-compete), the most it can cost is one year of your salary.
Must Be Clear and in Writing
No more vague or hidden restrictions. The terms have to be written clearly so you know what you’re signing.

Special Protections for Physicians

If you’re a doctor, you get some extra protections:

Fired Without Good Cause? Non-Compete Is Void.
If your employer lets you go for reasons that aren’t legitimate and job-related, your non-compete can’t be enforced at all.
Administrative Roles Don’t Count.
If you work in a purely management role (like being a medical director), these new limits don’t apply — different rules cover those contracts.
Patient Access Still Protected.
Doctors still have rights to patient lists, medical records (with patient permission), and the ability to keep treating patients in the middle of acute illness, even after leaving.

Why This Matters to You

Before this law, hospitals and medical groups often used broad non-competes to lock providers out of entire regions for years. That left many healthcare workers facing a tough choice: uproot your life to work elsewhere, or stay stuck in an unhealthy job.

Now:

The rules are clear. Employers can’t claim you can’t practice across half the city.
You have leverage. If a non-compete goes beyond one year or five miles, it’s likely unenforceable.
It’s easier to move on. With the buyout cost capped, buying your way out is actually realistic.
Physicians have extra protection. If you’re fired unfairly, the contract simply doesn’t hold you back.

What About Old Contracts?

The new law only applies to agreements entered into or renewed on or after September 1, 2025. But here’s the catch: many contracts “auto-renew” each year. That renewal may be enough to bring your old agreement under the new rules.

So if you signed years ago, don’t assume you’re stuck with the old terms. It’s worth reviewing your contract with a lawyer to see whether SB 1318 applies.

What Should You Do Now?

Read Your Contract. Check the duration, mileage, and buyout language. If they don’t match the new limits, your employer may not be able to enforce them after September 1.
Don’t Panic. Just because your agreement says something doesn’t mean it’s enforceable. Texas law now sets hard boundaries.
If You’re a Doctor Facing Termination, Pay Attention to “Good Cause.” Whether your non-compete survives may depend on how your termination is classified.
Talk to a Lawyer. Every situation is different, especially with older contracts or auto-renew clauses. A quick consultation can save you a lot of stress (and money).

Bottom Line

Starting September 2025, Texas law gives healthcare workers more freedom to change jobs without being locked out of their communities. If you’re a physician, dentist, nurse, or PA wondering, “Can my hospital stop me from working nearby?” — the answer is, not like they used to.

Non-competes are now shorter, narrower, and easier to challenge. That’s good news for employees — and for patients who want continued access to the providers they trust.

👉 If you’ve got a non-compete and you’re not sure how this new law affects you, now’s the time to get advice. Knowing your rights can mean the difference between feeling stuck — and moving forward with confidence.