Let’s talk about the bill that’s going to blow the dust off every employment agreement in Texas healthcare. And, if you aren’t in healthcare, you should still care – because your biz is next.
When Governor Abbott signed SB 1318, most folks didn’t hear the legislative mic drop – but they should have. Because buried in the legalese is a seismic shift in how Texas protects physicians, physician assistants, nurses, and dentists under the Business & Commerce Code. (Yes, the Commerce Code, not just some sleepy HR manual.)
This isn’t just a tweak. It’s a tectonic realignment of power in the employer-employee relationship, and this mic drops September 1, 2025, before most providers have time to recalibrate from trying to do summer with their family.
What exactly does it do, and how can you be ready?
The State Just Gave Healthcare Workers a Sword, and You May Be Holding the Handle
SB 1318’s big seismic shift is that it expands restrictions on restrictive covenants. You know, things like non-competes, non-solicits, and confidentiality clauses.
In short, your pristine little employment agreements that offered you some measure of protection might now be… well, more or less just legal decoration.
Imagine this:
- Your top nurse practitioner resigns. She’s courteous. Gives notice. Doesn’t take a single file.
- Three months later, your billing drops. Patients vanish. Your front office staff is mysteriously moonlighting elsewhere.
- Turns out that “airtight” non-solicit you pulled off LegalZoom in 2018? Now a legislative paper airplane.
Thanks, SB 1318!
If you’re a business owner, CHRO, or general counsel, this means you have exactly two choices:
- Be proactive and re-evaluate your agreements with surgical precision.
- Wait for your star provider to walk out the door, start a clinic across the street, and take half your patient base with them – all with legal backing. (Don’t worry, though, they’ll leave the K-Cups.)
Let’s be perfectly clear: healthcare is the new legal battleground. Healthcare companies (from DSOs to MSOs to private practice groups) are now squarely in the crosshairs of employment litigation risk.
Not because they’ve done anything wrong. But because the rules have changed and the old playbook doesn’t work.
It’s like trying to use a pager in a 5G world. You’ll still technically have a device… but good luck getting a signal.
All hope is not lost, though….
Employment Agreements in the SB 1318 Era
Smart businesses don’t just avoid liability, they design leverage. In the post-SB 1318 era, your employment agreements need to:
- Reflect new legal boundaries under Texas law.
- Clearly define the scope of proprietary information and enforceability.
- Preserve your competitive edge without accidentally setting your company’s legal pants on fire.
Because your goal can’t just be to remain in compliance and avoid lawsuits. You need to fight to retain top talent, deter competitors, and protect what you’ve built.
How can you make sure your agreements help you do this?
Bring in employment counsel who specializes in post-legislative recalibration. Not just people who can draft contracts, but strategic advisors who have a thorough understanding of the trenches.
They audit agreements with fresh eyes. They reframe employment relationships with intention. And – perhaps most importantly – they won’t pretend that a signed piece of paper equals protection in 2025.
Unsure If Your Employment Agreements Are Still Enforceable Under SB 1318?
Don’t wait to find out. Let’s talk before it becomes a problem.
I work with business leaders who don’t have time to play defense. Who are ready to protect their talent, their clients, and their sanity. So I know what it takes to help you get ahead of this.
What would you rather have – a smart conversation or a growth-killing lawsuit that could have been avoided? It’s not really a question.
Make your business SB 1318-ready. Reach out now.
