Here are three recent policy moves affecting state noncompete laws and other employment contract regulations since May 1, 2025, as reported by Becker’s:
1. In June, Texas Gov. Greg Abbott signed a bill that imposes stricter limitations on restrictive covenants in employment contracts for physicians and other healthcare practitioners. The new law goes into effect Sept. 1 and applies to noncompete agreements entered into or renewed on or after the effective date.
2. In early May, Indiana Gov. Mike Braun signed legislation expanding restrictions on noncompete clauses in some physician contracts. The legislation went into effect July 1 and prohibits noncompete agreements between physicians and hospitals, parent companies of healthcare organizations, and affiliated managers of a hospital and a hospital system. It does not repeal or replace any existing contracts, affecting only those signed after the effective date.
3. The Federal Trade Commission and the Justice Department issued a joint letter May 5 directing federal agency leaders to develop a list of anticompetitive regulations that limit competition, entrepreneurship and innovation.
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