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TX HB4067
Bill
Status
3/7/2025
Primary Sponsor
Christina Morales
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AI Summary
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Prohibits employers from entering into, enforcing, or representing that workers are subject to non-compete agreements, with violations rendering such covenants void and unenforceable
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Exempts "senior executives" from the complete ban, defined as workers in policy-making positions (president, CEO, or officers with policy-making authority) earning at least $151,164 in annual compensation
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Allows enforcement of existing non-compete agreements against senior executives only if entered into before September 1, 2025; new agreements with senior executives after that date are prohibited
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Requires employers to notify affected workers by January 1, 2026 that their non-compete agreements are void, with notice delivered by hand, mail, email, or text message
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Excludes non-compete agreements made in connection with bona fide sales of a business entity, ownership interest, or substantially all operating assets, and repeals existing provisions in the Business & Commerce Code authorizing enforceable non-competes
Legislative Description
Relating to prohibiting covenants not to compete against workers.
Business & Commerce
Last Action
Referred to s/c on Workforce by Speaker
3/27/2025