Texas judges a veterinarian's non-compete under the general test in the Covenants Not to Compete Act: the covenant must be ancillary to an otherwise enforceable agreement, and its limits on time, geographical area and scope of activity must be reasonable.
Texas's 2025 healthcare amendment, SB 1318, added buyout, one-year and five-mile conditions for dentists, nurses and physician assistants — not veterinarians.
There is no wage threshold, and the governing text was last amended effective September 1, 2025.
Mechanics, not a verdict on your contract
At a glance
Permitted — judged on reasonableness
State statute — Tex. Bus. & Com. Code § 15.50(a) (Covenants Not to Compete Act), with § 15.501 as amended by SB 1318 (2025) governing dentists, nurses and physician assistants only.
Healthcare statute reaches veterinarians: No — the healthcare statute's own definitions leave veterinarians out.
Section 15.50(a) makes a covenant not to compete enforceable if it is ancillary to or part of an otherwise enforceable agreement, to the extent its limits on time, geographical area and scope of activity are reasonable and no greater than necessary to protect the goodwill or other business interest of the promisee.
No. Section 15.501, as amended by SB 1318 (2025), covers dentists, nurses licensed under Occupations Code Chapter 301 and physician assistants licensed under Chapter 204. Veterinarians, licensed under Occupations Code Chapter 801, are not named in it.
No wage threshold in § 15.50. The § 15.501(b) conditions apply only to the three practitioner types § 15.501 names.
No fixed statutory cap for a veterinarian: time and geographical area must be reasonable under § 15.50(a). The one-year and five-mile limits in § 15.501(b) do not reach veterinarians.
Not stated in the sources read.
Not stated in the sources read.
Not stated in the sources read.
§§ 15.50 and 15.501 as amended by SB 1318 — Acts 2025, 89th Leg., R.S., Ch. 816, effective September 1, 2025.
“Notwithstanding Section 15.05 and subject to any applicable provision of Subsection (b) and Section 15.501, a covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement at the time the agreement is made to the extent that it contains limitations as to time, geographical area, and scope of activity to be restrained that are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the promisee.”
Section 15.50(a) sets two gates.
The first is structural: the covenant has to be ancillary to or part of an otherwise enforceable agreement at the time that agreement is made.
The second is about scope: its limits on time, geographical area and the activity restrained have to be reasonable and no greater than necessary to protect the goodwill or other business interest of the promisee — for an associate, the practice.
Read against an offer, that means three separate questions rather than one: how long, how far, and restricting what.
The statute frames each around what the practice is protecting, not around a fixed number of months or miles.
“a covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement at the time the agreement is made to the extent that it contains limitations as to time, geographical area, and scope of activity to be restrained that are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the promisee.”
SB 1318 rewrote the definition of "health care practitioner" in § 15.501 to name three license types: dentists, nurses licensed under Occupations Code Chapter 301, and physician assistants licensed under Chapter 204.
Texas licenses veterinarians under Occupations Code Chapter 801, which § 15.501 does not cross-reference anywhere.
A headline about Texas limiting healthcare non-competes therefore does not describe a veterinarian's covenant — the protections stop at the three license types the section names.
Section 15.50(a) itself also points to a separate, pre-existing physician provision in its subsection (b); that provision concerns physicians, and the research behind this page does not quote it.
“(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.”
Section 15.50 contains no wage threshold, so the same reasonableness test applies whatever a veterinarian earns.
For the three practitioner types it covers, § 15.501(b) adds four conditions: a buyout no greater than the practitioner's total annual salary and wages at termination, expiry within one year, a radius of no more than five miles from where the practitioner primarily practiced, and terms stated clearly and conspicuously in writing.
None of those four conditions is written for veterinarians.
A veterinary covenant's duration and radius are measured only against the § 15.50(a) reasonableness language.
“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:”
SB 1318 took effect on September 1, 2025 and amended both § 15.50 and § 15.501.
Texas's healthcare-specific conditions had covered physicians only, through § 15.50(b) and (d); the amendment extended § 15.501's conditions to dentists, nurses and physician assistants.
The general § 15.50(a) rule that governs a veterinarian's covenant is recorded as unchanged, and veterinarians were not added to the list.
For a veterinarian, the 2025 amendment is mainly a reason to discount headlines, not a change to the test.
“Acts 2025, 89th Leg., R.S., Ch. 816 (S.B. 1318), Sec. 1, eff. September 1, 2025.”
The research behind this page reads the statute's text; it does not cover how a Texas court treats a covenant it finds overbroad, whether a covenant tied to selling a practice or an ownership interest is treated differently, or how client and staff non-solicitation clauses are handled.
Those gaps matter most at a buy-in or buy-out, where a covenant may be drafted alongside the purchase terms.
They are left blank here rather than filled from another state's rule — take them to a Texas attorney with the whole agreement in hand.
Have the agreement itself reviewed
The reasonableness test, what a radius is measured from, the access-to-care argument, and the difference between a non-compete and a non-solicitation clause are covered in the national guide to veterinary non-competes. This page covers only what is specific to Texas.
No. SB 1318 amended § 15.501 to cover dentists, nurses licensed under Occupations Code Chapter 301 and physician assistants licensed under Chapter 204.
Veterinarians are licensed under Chapter 801, which § 15.501 does not name, so its buyout, one-year and five-mile conditions do not apply to a veterinarian's covenant.
That covenant stays under the general § 15.50(a) test.
Have a Texas attorney who handles veterinary employment contracts read your agreement against that test.
Section 15.50 contains no wage threshold.
Its test turns on whether the covenant is ancillary to an otherwise enforceable agreement and whether its limits on time, geographical area and scope of activity are reasonable — not on what the veterinarian earns.
That describes how the statute is written, not how it applies to a particular contract; an attorney licensed in Texas can tell you how it bears on yours.
It is the statute's first gate: the covenant has to be attached to an agreement that is itself enforceable at the time that agreement is made.
It is a separate question from whether the time, area and activity limits are reasonable.
The research behind this page quotes the statutory words but not the court decisions that interpret them, so how the gate applies to a specific offer letter or employment agreement is a question for a Texas employment attorney.
The sources read for this page do not address how Texas treats a covenant tied to the sale of a practice or an ownership interest, so this page does not answer it.
A buy-in or buy-out agreement may carry its own covenant, drafted alongside the purchase terms rather than the employment terms.
Before signing one, have a Texas attorney who handles veterinary practice transactions review the covenant and the purchase agreement together.
The most recent change recorded for this page is SB 1318, effective September 1, 2025, which amended §§ 15.50 and 15.501 and extended the healthcare-practitioner conditions to dentists, nurses and physician assistants.
It did not add veterinarians.
This page was last verified in September 2026; legislatures and courts both move this area, so confirm the current text and ask an attorney before relying on it.
Sources
Sourced from Texas’s own statute or leading court decisions (see the citations above). Verified September 2026; the governing provision was last amended §§ 15.50 and 15.501 as amended by SB 1318 — Acts 2025, 89th Leg., R.S., Ch. 816, effective September 1, 2025. This page is general information, not legal advice.