TX SB1318

Limits non-compete agreements for physicians to a maximum duration of one year after termination and restricts the geographic scope to no more than a five-mile radius from the physician's primary practice location

Caps buyout amounts for physician non-compete agreements at no more than the physician's total annual salary and wages at the time of termination, replacing the previous "reasonable price" or arbitration standard

Makes non-compete agreements void and unenforceable against physicians who are involuntarily discharged without good cause, defined as conduct-related reasons including job performance or employment record

Extends non-compete restrictions to dentists, nurses (professional and vocational), and physician assistants, requiring the same one-year maximum duration, five-mile geographic limit, and salary-capped buyout provisions

Takes effect September 1, 2025, and applies only to covenants entered into or renewed on or after that date