The rules around physician and healthcare worker noncompetes are changing faster than most employment contracts get reviewed, with at least six states enacting new restrictions or bans in 2026.
Several more states are actively considering legislation — while the FTC confirmed it won’t pursue a federal ban, leaving healthcare employers to navigate a patchwork that looks different from state to state and month to month.
Here are 15 updates on noncompete legislation and changes to noncompetes in numerous states, as reported by Becker’s so far in 2026:
- Washington is banning nearly all noncompete agreements starting June 30, 2027.
- Virginia and Tennessee both imposed new restrictions on noncompete agreements on July 1, 2026, adding to a growing wave of state-level limits on the employment clauses that affect tens of thousands of healthcare workers.
- A North Carolina Senate committee advanced legislation June 11 that would prohibit noncompete clauses for physicians, physician assistants, nurse practitioners and registered nurses.
- The American Medical Association estimates that between a third and nearly half of all doctors have a noncompete clause in their employment contract.
- Nebraska Governor Jim Pillen signed legislation April 14 prohibiting noncompete agreements for healthcare staffing agencies and establishing new registration requirements for the industry.
- Legislators in Ohio are considering two bills that would create new restrictions for noncompetes as rural healthcare systems in the state continue to face an uphill battle against staffing shortages.
- Virginia enacted a law expanding limits on noncompete agreements for certain employees.
- A Texas appeals court upheld a non-compete injunction against four CRNAs, barring them from practicing within a 20-mile radius of their former workplaces for three years.
- Governor Janet Mills signed a law limiting noncompete clauses in employment contracts for rural healthcare workers.
- Legislators in Iowa passed a bill to ban University of Iowa Health Care from utilizing noncompete clauses in employment contracts.
- There have been a number of noncompete lawsuits across the country in 2026, which will impact physicians who are navigating employment contracts.
- Representatives in South Dakota are deliberating a bill that would adjust the laws surrounding noncompete agreements for healthcare facilities.
- In an online workshop hosted by the FTC, the agency’s Chair Andrew Ferguson said that the agency would not impose a blanket ban on noncompetes in all physician contracts.
- Legislators in New Jersey are likely to re-introduce legislation that would ban most noncompete agreements in the state.
- Lawmakers in South Carolina are considering banning noncompete clauses in physician contracts with a newly introduced bill.
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