Physician noncompete agreements.
Summary
Provides that a physician and a hospital, a parent company of a hospital, an affiliated manager of a hospital, or a hospital system may not enter into a noncompete agreement on or after July 1, 2025.
Bill status
signed
all 5 stages cleared
Introduction
Jan 2025
Committee Review
Apr 2025
Senate Passage
Apr 2025
House Passage
Apr 2025
Signed into Law
May 2025
Introduced Jan 13, 2025
Signed May 6, 2025
Maddy AI version diff · 3 comparisons
What changed between versions
Senate Bill (H)
→
Senate Bill (S)
·
4 edits
MODERATE
The bill was amended to expand the scope of prohibited noncompete agreements to include hospitals and their parent companies, not just general employers. The bill also adds new definitions for key terms like 'business entity' and 'competition related penalties agreement' to clarify what agreements are covered. A new exemption was added for noncompete agreements made during business sales or asset disposals.
Scope change
The bill now applies specifically to physicians and healthcare entities (hospitals, parent companies, and affiliated managers) rather than just physicians and general employers.
SCOPE
Changed the prohibited parties from 'physician and employer' to 'physician and hospital, parent company of a hospital, or affiliated manager of a hospital'.
DEFINITION
Added new definitions for 'business entity' and 'competition related penalties agreement' to clarify what types of agreements are covered.
Added a new definition for 'originally entered into' to clarify that amendments or renewals of existing agreements are not covered by the ban.
REQUIREMENT
Added exemptions for noncompete agreements made in connection with business sales, asset disposals, or when originating outside the employment relationship.
Floor votes · Senate Jan 28, 2025 · House Apr 9, 2025
How they voted
47–2
Passed · 1 other
Total votes 50
Jan 28, 2025
D
Democratic10
90% Yea
R
Republican40
95% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
36
Key actions
11
Committee
5
Amendments
1
May 6, 2025
Signed into law
Signed by the Governor
executive
Apr 29, 2025
Upper · Passed
Signed by the President of the Senate
upper
Apr 25, 2025
Lower · Passed
Signed by the Speaker
lower
Apr 24, 2025
Upper · Passed
Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 521: yeas 46, nays 4
upper
Apr 24, 2025
Lower · Passed
Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 556: yeas 65, nays 21
lower
Apr 24, 2025
Upper · Passed
Signed by the President Pro Tempore
upper
Apr 10, 2025
Introduced
Senate dissented from House amendments
upper
Apr 9, 2025
Lower · Passed
Third reading: passed; Roll Call 410: yeas 71, nays 23
lower
Apr 3, 2025
Lower · Passed
Committee report: amend do pass, adopted
lower
Mar 3, 2025
Lower · Passed
Reassigned to Committee on Employment, Labor and Pensions
lower
Jan 28, 2025
Upper · Passed
Third reading: passed; Roll Call 36: yeas 47, nays 2
upper
Jan 23, 2025
Upper · Passed
Committee report: amend do pass, adopted
upper
4 primary · 6 co-sponsors
Sponsors
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