Tex. Business & Commerce Code § 15.501
This is the official text of Tex. Business & Commerce Code § 15.501, part of Texas’s Business & Commerce Code — governs commercial transactions and general business practices.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 15.501. COVENANTS NOT TO COMPETE AGAINST HEALTH CARE PRACTITIONERS.
Official statutory text
(a) In this section, "health care practitioner" means:
(1) a person licensed by the State Board of Dental Examiners to practice dentistry in this state;
(2) a person licensed under Chapter 301, Occupations Code, to engage in professional or vocational nursing; or
(3) a physician assistant licensed under Chapter 204, Occupations Code.
(b) A covenant not to compete relating to the practice of dentistry or nursing, or practice as a physician assistant, as applicable, is not enforceable against a health care practitioner unless the covenant:
(1) provides for a buyout of the covenant by the health care practitioner in an amount that is not greater than the practitioner's total annual salary and wages at the time of termination of the practitioner's contract or employment;
(2) expires not later than the one-year anniversary of the date the contract or employment has been terminated;
(3) limits the geographical area subject to the covenant to no more than a five-mile radius from the location at which the health care practitioner primarily practiced before the contract or employment terminated; and
(4) has terms and conditions that are clearly and conspicuously stated in writing.
(1) a person licensed by the State Board of Dental Examiners to practice dentistry in this state;
(2) a person licensed under Chapter 301, Occupations Code, to engage in professional or vocational nursing; or
(3) a physician assistant licensed under Chapter 204, Occupations Code.
(b) A covenant not to compete relating to the practice of dentistry or nursing, or practice as a physician assistant, as applicable, is not enforceable against a health care practitioner unless the covenant:
(1) provides for a buyout of the covenant by the health care practitioner in an amount that is not greater than the practitioner's total annual salary and wages at the time of termination of the practitioner's contract or employment;
(2) expires not later than the one-year anniversary of the date the contract or employment has been terminated;
(3) limits the geographical area subject to the covenant to no more than a five-mile radius from the location at which the health care practitioner primarily practiced before the contract or employment terminated; and
(4) has terms and conditions that are clearly and conspicuously stated in writing.
Status: in_force · Read it on the official government site
Dealing with a business matter in Texas?
See all Texas Business lawyers
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.