Loading chat...

TX HB4067

Bill

Status

Introduced

3/7/2025

Primary Sponsor

Christina Morales

Click for details

Origin

House of Representatives

89th Legislature Regular Session

AI Summary

  • Prohibits employers from entering into, enforcing, or representing that workers are subject to non-compete agreements, with violations rendering such covenants void and unenforceable

  • 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

  • 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

  • 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

  • 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

Committee Referrals

Workforce Subcommittee3/27/2025

Full Bill Text

No bill text available