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Can a home care agency make caregivers sign a non-compete in Texas?
Last verified October 17, 2026 · All Texas resources
Generally enforceable if reasonable. Texas enforces a non-compete if it is ancillary to an otherwise enforceable agreement and reasonable in time, geographic area and scope. Courts must reform an overbroad covenant rather than void it. There is no wage threshold; the special limits cover physicians, dentists, licensed nurses and physician assistants, not unlicensed aides.
| Status | Generally enforceable if reasonable |
|---|---|
| Healthcare-specific rule | Non-competes with physicians must meet statutory conditions (patient list and records access, a buy-out capped at one year's pay, and other limits) and are void if the physician is discharged without good cause. Non-competes with dentists, licensed professional or vocational nurses (RNs and LVNs) and physician assistants are unenforceable unless they include a buy-out capped at one year's pay, last no more than one year, cover no more than a five-mile radius, and are clearly stated in writing (Tex. Bus. & Com. Code § 15.501). |
| Statute | Tex. Bus. & Com. Code §§ 15.50-15.52 |
| Latest change | 2025-09-01 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
General information, not legal advice.
Sources
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Non-compete rules by state: other states
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