Texas Non-Compete Law Changes for Med Spa Practitioners
If you are a nurse, physician assistant, or dentist working in a medical spa here in Texas, there is a good chance that your employment agreement includes a non-compete clause. And if you are like most practitioners I talk to, you probably signed that agreement on your first day without thinking too much about it. It was buried in a pile of onboarding paperwork, and you were focused on getting started. Or maybe you pushed back during hiring, but the employer insisted on those terms and you felt like you did not have much choice.
Either way, everything shifted when Governor Greg Abbott signed Senate Bill 1318 in June 2025. That one signature completely changed how non-compete agreements work for healthcare practitioners across Texas. This includes everyone working in the fast-growing world of medical aesthetics.
If you are practicing in Sugar Land, Houston, or anywhere else in the state, these changes mean something very real. Your career mobility just opened up in ways that were not possible before. The new law takes effect on September 1, 2025, and it sets firm limits on how long a non-compete can last, how far it can reach, and how expensive the buyout can be.
Whether you are an RN injecting Botox, a PA performing laser treatments, or a dentist handling cosmetic work inside a med spa, these changes are not just nice information to have. They might actually protect your ability to work where you want in the future.
TL;DR
- SB 1318 takes effect on September 1, 2025. It places strict limits on non-compete agreements for physicians, dentists, registered nurses, licensed vocational nurses, and physician assistants in Texas.
- Non-competes can last no longer than one year. They cannot extend more than five miles from your primary practice location. And any buyout cannot exceed your annual salary.
- These rules apply only to agreements signed or renewed on or after September 1, 2025. Automatic renewal clauses might trigger the new requirements.
- For med spa practitioners, these restrictions open up far more flexibility to switch employers or start new practices.
- Review your employment agreement now, especially if you are planning a job change or if your contract renews soon.
What Changed with Texas Senate Bill 1318
For years, Texas allowed non-competes for healthcare workers, but the rules were vague. Courts spent a lot of time deciding whether a restriction was reasonable. Employers often took advantage of that gray area. I have seen nurses and PAs in med spas stuck under two-year restrictions that covered huge areas like all of Houston or entire counties. People felt trapped in jobs they no longer wanted.
Senate Bill 1318 changed that. Governor Abbott signed it on June 20, 2025, and Texas joined the wave of states putting real limits on healthcare non-compete. When the law takes effect on September 1, 2025, the days of overly broad, open-ended restrictions come to an end.
Before this new law, only physicians had specific statutory protections under Texas Business and Commerce Code 15.50(b). Those protections required a buyout option and access to patient lists, but they did not set any hard limits on geography or duration. Courts still had to decide what was reasonable.
SB 1318 adds Texas Business and Commerce Code 15.501, extending clear rules to dentists, nurses, and physician assistants. These rules include concrete numerical caps that employers cannot get around.
This is the most significant update to the healthcare non-compete law in Texas in a very long time. Lawmakers recognized that overly restrictive agreements were hurting the workforce, limiting patient access, and keeping skilled practitioners in jobs they no longer wanted. In the medical aesthetics world, where demand is exploding, these barriers were holding a lot of people back.
Who the New Law Affects
SB 1318 applies to healthcare practitioners licensed in Texas. If you hold one of these licenses and work in a med spa, the new rules apply to your non-compete.
Physicians continue to have their existing protections, but now with tighter limits. Any Texas physician will face the one-year, five-mile, and salary-based caps.
Dentists are now fully included under Section 15.501. If you are performing dental procedures in a med spa, even cosmetic ones, you must be covered by the new restrictions.
Registered Nurses are protected under the new law. This includes RNs performing injectables, laser treatments, peels, or any clinical aesthetic service.
Licensed Vocational Nurses receive the same protections as RNs. Many med spas use LVNs in clinical roles, and their contracts must comply with these limits.
Physician Assistants are included as well. PAs often perform a wide variety of aesthetic services. Their agreements must follow the one-year, five-mile, and salary-capped buyout rules.
One important detail for med spa workers. The law applies only to agreements related to the practice of your licensed profession. If you are in a purely administrative role without performing clinical services, the new protections might not apply. But if you are performing any clinical or procedural duties tied to your license, you are covered.
The New Restrictions on Non-Competes
The new law places three firm limits on all covered practitioners. These limits are not suggestions. They are mandatory. If a contract goes beyond them, that part of the agreement cannot be enforced.
One-Year Maximum Duration
Your non-compete cannot last longer than one year after your employment ends. The clock starts on your termination date. After twelve months, the restriction is over.
This is a major shift. Many med spa employers used to demand two-year or even three-year restrictions. Courts would debate whether those were reasonable. Now there is no debate. One year is the limit.
When that year ends, you are free to work anywhere. Even right next door. You can advertise, you can compete, and you can accept clients. The restriction simply ends.
Five-Mile Geographic Radius
Your non-compete cannot extend beyond five miles from your primary practice location. That location is the office or med spa where you spent most of your time working before your employment ended.
If you split time among multiple locations, the agreement should specify which one is primary. Employers are beginning to spell this out more clearly now.
In a large city like Houston, five miles can still feel like a big circle. But it is far more reasonable than the broad county or region-wide restrictions that were common before.
Buyout Limited to Annual Salary
Your employer must offer a buyout option, and the cost cannot exceed your total annual salary and wages at the time you leave. If you earned $85,000 during your last year, the buyout cannot exceed $85,000.
In the old physician rules, the buyout number had to be reasonable. But what counted as reasonable often turned into a fight. Some employers set buyouts at six-figure numbers tied to their projected losses.
Now the limit is simple. Your actual pay is the ceiling.
This gives you real negotiating power. If a new employer wants to hire you, they might even help pay the buyout.
Terms Must Be Clear and Conspicuous
The agreement must clearly spell out the geographic limit, time limit, and buyout amount. Nothing can be hidden in tiny text or complicated legal language.
This protects you from accidentally agreeing to terms that you did not see or understand.
How This Affects Med Spa Practitioners in Sugar Land and Houston
Houston and the surrounding areas, including Sugar Land, have become some of the busiest medical aesthetics markets in Texas. New med spas open constantly, and established practices are always recruiting skilled providers.
Before SB 1318, a restrictive non-compete could essentially block you from working anywhere nearby. A two-year restriction covering Fort Bend County and Harris County could wipe out your job prospects entirely.
Under the new five-mile limit, the picture changes. Even if you are restricted for one year, there are plenty of places outside that radius where you can work. In Sugar Land, nearby cities like Katy, Pearland, Missouri City, and The Woodlands fall outside the five-mile zone.
This creates far more options, especially in suburban areas. Someone working in downtown Houston might feel more boxed in because of population density. But in Sugar Land, you have more pathways open.
And because the medical aesthetics field changes quickly, a one-year restriction is far easier to navigate than two or three years. You avoid losing skills or falling behind in trends.
These changes also help practitioners who want to open their own med spas. Due to corporate practice of medicine rules, only physicians can own a med spa. But nurses and PAs can participate in ownership through management service organizations. With the new law, starting fresh has become more realistic.
What Happens to Existing Agreements
Here is the big question most people ask. Does this new law change the non-compete you already signed?
The answer depends on timing.
SB 1318 applies only to agreements entered into or renewed on or after September 1, 2025. That means the law does not rewrite your contract if you signed it earlier, and it does not renew after that date.
So if you signed a broad restriction in 2023 that lasts two years, and your agreement does not renew, those terms still apply.
But watch out for automatic renewal clauses. If your contract renews automatically after September 1, 2025, that renewal likely triggers the new limits.
Some employers are already trying to update agreements before September 1 to avoid the new rules. If your employer asks you to sign something new, read it very carefully.
If you have an older agreement, take time now to review it. Look for renewal provisions and mark any relevant deadlines. This could make a big difference in your options.
How Med Spa Owners Can Still Protect Their Business
If you are a med spa owner, you might feel nervous reading all this. And that is understandable. You invest time, money, training, and trust in your team. You want to protect your business.
The good news is that SB 1318 does not eliminate all restrictive covenants. It simply narrows non-compete agreements.
Employers can still use:
- Non-solicitation agreements
- Confidentiality agreements
- Trade secret protections
- Garden leave provisions
A non-solicitation clause can prevent former employees from directly reaching out to clients. This is a powerful tool in aesthetics where client relationships matter.
Confidentiality agreements still protect proprietary information like pricing, treatment protocols, marketing strategies, and client data.
Garden leave clauses can keep an employee from competing while the employer continues paying them for a short period.
The idea is not to block competition entirely. It is to protect legitimate business interests while allowing providers to continue practicing their profession.
What About the FTC Non-Compete Ban
You might have heard about the Federal Trade Commission attempting to ban non-competes nationwide back in 2024. That rule never took effect.
A federal court in Texas blocked the FTC rule, stating that the FTC overstepped its authority. That ruling applied nationwide.
The FTC might still appeal, but there is no federal ban in place right now. So, for Texas med spa practitioners, state law governs non-compete.
Texas rules matter. Federal ones do not change your situation at this time.
When You Should Review Your Contract
You should review your employment agreement any time one of these things happens:
- Before signing a new job offer
- If your contract is set to renew
- If you are thinking about leaving your job
- If you are being recruited by another med spa
- If your employer asks you to sign an amendment
- If you are unsure about your restrictions
Always read your contract carefully. Better yet, have someone experienced in employment matters take a look. A small review fee is usually far less expensive than a legal dispute later.
What If Your Employer Terminates You Without Good Cause
Physicians get additional protection under SB 1318. If a physician is terminated without good cause, the non-compete becomes void.
Good cause is defined as a reasonable basis for discharge that is related to the physician’s conduct or performance.
If a physician is terminated for reasons unrelated to their conduct, the non-compete disappears entirely.
This protection applies only to physicians for now. Dentists, nurses, and PAs do not have the same statutory rules. But wrongful termination laws still provide some protections in certain situations.
If you believe you were terminated unfairly, document everything. It may matter later.
What Med Spa Practitioners Should Do Now
Here is a simple action plan.
- Find and read your current agreement
- Identify your contract’s renewal date
- Document your primary practice location
- Review any new employment offer carefully
- Know your buyout amount
- Understand your rights
- Seek guidance if anything feels unclear
Your contract is not just a document you sign once and forget. It affects your future career moves and opportunities.
Frequently Asked Questions
Q. Does SB 1318 apply to estheticians?
A. No. The law covers only licensed healthcare practitioners. Estheticians fall under the general non-compete rules in Texas, not the new stricter limits.
Q. Can my employer ask me to sign a non-compete in August 2025?
A. Yes. Employers can still use older-style non-competes until September 1. Be extremely cautious about signing anything right before the effective date.
Q. What if my non-compete signed after September 1 does not follow the new rules?
A. If it does not meet the statutory requirements, it likely cannot be enforced.
Q. Does the five-mile radius apply to all locations where I worked?
A. No. Only the primary practice location matters.
Q. Can I negotiate a lower buyout?
A. Yes, absolutely. The salary cap is a maximum, not a minimum.
Q. Are non-solicitation agreements affected?
A. No. Non-solicitation remains fully enforceable.
Q. What if I move to another state?
A. Restrictions usually apply only within the defined geographic area. But read your agreement carefully for tolling provisions.
Q. Can my employer sue me for violating a non-compete?
A. Yes. But they must prove the agreement is valid and enforceable.
Q. Do I need an attorney to review my contract?
A. It is not required, but it is often well worth it.
Q. Does it matter whether I work in Houston or Sugar Land?
A. Legally, the rules are the same. Practically, the impact may differ because of density and available nearby options.
Q. Can a physician assistant own a med spa?
A. Not directly, because of the corporate practice of medicine rules. But PAs can own part of the business operations through management service organizations.
Q. Does SB 1318 apply to independent contractors?
A. Yes. The law covers both employment and contractual practice arrangements.
Let Us Help Protect Your Career and Your Rights
Your ability to practice your profession should not be controlled by overly restrictive agreements. You have worked hard to build your skills, and you deserve the freedom to use them in ways that support your career goals.
The changes under SB 1318 are a meaningful step forward, but they only help if you understand how they apply to you.
At Brewster Law Firm, we are deeply familiar with the business side of medical aesthetics. We work closely with practitioners and med spa owners, and we understand how these agreements impact your daily life and long-term plans.
Whether you are reviewing a new contract, preparing to leave a restrictive job, or trying to navigate a possible dispute, we can guide you through the process in a way that protects both your rights and your future.
Contact Brewster Law Firm today to discuss your employment agreement or any non-compete concerns. We are here to help you move forward with clarity and confidence.