Does Texas Senate Bill 1318 Apply to Veterinarians? What the New Non-Compete Law Means for Vets

Short answer: No. Texas Senate Bill 1318 does not apply to veterinarians.

SB 1318 changed the rules for non-compete agreements covering physicians, dentists, nurses, and physician assistants. Veterinarians are not included. If you are a veterinarian who landed here while researching this law, it does not change your non-compete, and below we explain exactly why, and what law does govern your agreement.

We hear from veterinarians about SB 1318 often. The good news is that the answer is straightforward once you understand who the law was written for.

What Is Texas Senate Bill 1318?

Senate Bill 1318 was signed into law on June 20, 2025, and took effect on September 1, 2025. It amends the Texas Covenants Not to Compete Act (Texas Business & Commerce Code Sections 15.50 and 15.52) and adds a new Section 15.501.

For the professions it covers, SB 1318 made several significant changes to non-compete agreements, including:

• A one-year maximum duration after employment ends.

• A five-mile geographic limit from the practitioner's primary practice location.

• A buyout cap equal to the practitioner's total annual salary and wages at termination, replacing the older "reasonable price" standard.

• A clear-writing requirement, so the terms must be stated conspicuously.

• A "good cause" rule for physicians, under which a physician's non-compete becomes void if the physician is involuntarily discharged without good cause.

  
  

Importantly, SB 1318 applies only to agreements entered into or renewed on or after September 1, 2025. Agreements signed before that date are governed by the law in effect when they were signed.

Who SB 1318 Actually Covers

This is where the confusion starts. SB 1318 applies to a specific, closed list of healthcare professionals:

• Physicians licensed by the Texas Medical Board

• Dentists licensed by the State Board of Dental Examiners

• Nurses licensed under Chapter 301 of the Texas Occupations Code (RNs, LPNs, CRNAs, nurse midwives, APRNs, and others)

• Physician assistants licensed under Chapter 204 of the Texas Occupations Code

  
  

That list is exhaustive. The law does not include a catch-all for "all healthcare providers," and it does not reference the veterinary profession anywhere.

Why SB 1318 Does Not Apply to Veterinarians

Veterinarians in Texas are licensed under the Texas Veterinary Licensing Act (Texas Occupations Code Chapter 801) by the Texas State Board of Veterinary Medical Examiners. This is a different statute and a different licensing board than any of the professions SB 1318 names. Because the law's coverage is tied to those specific licenses, it simply does not reach veterinary employment or independent-contractor agreements.

In other words, even though a veterinary clinic is unquestionably a "healthcare" setting in everyday language, SB 1318 is not a general healthcare statute. It is a targeted amendment that lists the exact professions it affects, and veterinary medicine is not one of them.

Why So Many Veterinarians Are Researching This Law

If the law doesn't apply, why are so many vets finding it? A few reasons:

1. The headlines say "healthcare non-competes." Coverage of SB 1318 routinely describes it as reform for "healthcare practitioners." When a veterinarian searches for "Texas healthcare non-compete law," search engines and AI tools surface SB 1318, even though veterinarians fall outside it.

2. The FTC's 2024 non-compete ban mentioned veterinarians by name. In April 2024, the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, and the agency specifically cited stories from veterinarians. That rule was blocked by a federal court in Texas in August 2024 and never took effect. Many vets remember the headlines and now conflate that federal effort with the new Texas law.

3. The two stories ran close together. A blocked federal ban followed by a high-profile Texas healthcare statute is an easy combination to mix up.

   
   

The result is a lot of understandable worry over a law that doesn't actually govern veterinary contracts.

What Law Actually Governs Veterinary Non-Competes in Texas?

Veterinary non-competes in Texas are governed by the general Texas Covenants Not to Compete Act, the same framework that applied before SB 1318. Under that law, a non-compete is enforceable only if it:

• Is ancillary to an otherwise enforceable agreement (both sides made binding promises), and

• Is reasonable in duration, geographic scope, and the activities it restricts.

  
  

Texas courts scrutinize overly broad restrictions and can reform (narrow) a covenant that sweeps too far rather than throwing it out entirely. So the practical questions for a veterinary non-compete are familiar ones: How long does it last? How large is the radius? What activities does it actually prohibit, and does it carve out relief work, emergency care, telemedicine, or shelter volunteering?

A note for veterinarians outside Texas: SB 1318 is a Texas state law. It has no effect on agreements governed by another state's law. Non-compete enforceability varies dramatically by state. Some states (such as California, North Dakota, and Oklahoma) sharply limit or bar employee non-competes, while others enforce reasonable ones. The governing-law clause in your contract matters, and it is worth confirming before you sign.

What Veterinarians Should Actually Do

• Don't assume a clause is unenforceable just because it feels unfair, and don't assume SB 1318 protects you, because it doesn't.

• Read the geographic radius and duration carefully. In a market dominated by a few corporate groups, even a modest radius can close off most local jobs.

• Watch for corporate-wide restrictions that apply to every location a group owns, not just where you work.

• Negotiate before signing. Non-competes are negotiable: narrowing the radius, shortening the term, and adding carve-outs for relief or emergency work are all common.

• Have it reviewed by an attorney who knows veterinary contracts and your state's law.

Frequently Asked Questions

Does SB 1318 apply to veterinarians in Texas? No. SB 1318 covers physicians, dentists, nurses, and physician assistants. Veterinarians are licensed under a separate statute and are not included.

Did SB 1318 ban veterinary non-competes? No. It did not ban any non-competes. It placed limits (one-year term, five-mile radius, salary-based buyout cap) on agreements with the specific professions it covers. Veterinary non-competes remain governed by the general Texas Covenants Not to Compete Act.

Is the five-mile radius limit relevant to my veterinary contract? Not as a statutory requirement. The five-mile and one-year limits in SB 1318 apply to covered human-healthcare professionals. A veterinary non-compete is judged under the general "reasonableness" standard, which has no fixed mileage cap.

What about the FTC's non-compete ban that mentioned vets? That 2024 federal rule was blocked by a federal court and never took effect. State law continues to govern veterinary non-competes.

My veterinary non-compete feels too broad. Can it still be enforced? Possibly, but Texas courts can narrow an overbroad covenant rather than enforce it as written. Whether yours is enforceable depends on its specific terms and the facts of your situation, which is why a contract review is worthwhile.

This article is provided for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Laws change and every situation is different. If you have questions about a specific veterinary employment agreement or non-compete clause, please contact us for a consultation.

The Roasa Law Group represents veterinarians and veterinary practice owners nationwide on employment agreements, non-competes, practice transactions, and business matters across the profession.