Physician non-compete by state: 14-state guide

Physician non-compete rules vary by state, contract date, professional role, and the circumstances of departure. Some states prohibit employment restrictions; others impose limits or use a court's reasonableness test. The FTC's nationwide Non-Compete Rule was removed from federal regulations effective February 12, 2026, following court vacatur. Review state law and the actual agreement before choosing a new location or giving notice. Federal Register

This is a comparison of 14 states, not a 50-state legal opinion. The summaries are starting points for a healthcare attorney. A statute or case can have exceptions, and later developments can change its application to your contract.

What should you check in a physician non-compete by state?

Start with the contract's dates and scope, then identify the law that applies. A physician employment agreement, a practice-sale agreement, and a partnership agreement may receive different treatment. Do not assume that a new statute applies to an older agreement or that a rule for physicians gives identical protection to NPs or PAs.

Fact to collect	Why it matters
Original signature and each renewal or amendment	Some protections apply only to agreements entered into or renewed after a specified date.
Employment, partnership, ownership, or sale relationship	A sale-of-business exception may differ from an employment rule.
Professional license and actual duties	Statutes may identify particular professions or distinguish clinical and administrative work.
Restricted activities, time, and geography	The clause may reach particular services, locations, or patient relationships.
Resignation or termination circumstances	Some laws or agreements change the result according to how the relationship ends.
Governing law, forum, and remedies	Counsel needs to assess where a dispute would be heard and what relief is sought.

Is the FTC non-compete ban in effect?

No. In its February 12, 2026 final action, the FTC removed the Non-Compete Rule from the Code of Federal Regulations to conform to federal court decisions. The effective date was February 12, 2026. That action does not itself cancel a physician's contract or replace state law. FTC final action in the Federal Register

Use the federal status as one part of the review. An employer's clause may still be unenforceable under state law, or may remain enforceable within limits. Either conclusion needs the applicable state authority and facts.

What do the 14 state examples say?

The tables separate statutory restrictions from examples of case-law analysis. They retain the conditions that most often change the answer: contract date, ownership or sale exceptions, patient access, and reason for termination. Source links point to the law, court opinion, or issuing authority rather than a commercial ranking of states.

States with prohibitions or specific statutory limits

State	Summary for the contract review	Qualification to check
California	The Attorney General explains that non-competes are generally unenforceable under California law.	Limited statutory exceptions, such as some business-sale situations, need separate review. California Attorney General
Florida	Section 542.336 voids a narrow class of physician covenants where one entity employs or contracts with all physicians in a specialty in a county.	This is not a general physician ban. The protection continues for three years after a second qualifying entity begins providing that specialty. Section 542.336
Massachusetts	Section 12X voids geographic and time restrictions on a physician's practice after the specified professional relationship ends.	It leaves the remaining contract provisions intact. Chapter 112, section 12X
Minnesota	Section 181.988 makes covered employment non-competes void, with exceptions for qualifying business sales and dissolutions.	The enactment applies to agreements entered into on or after July 1, 2023. Its definition excludes nondisclosure and nonsolicitation agreements. Statute and 2023 session law
Rhode Island	Section 5-37-33 voids specified physician practice restrictions, including restrictions on treating or soliciting the employer's current patients.	A practice-sale restriction of five years or less has a stated exception. Section 5-37-33
Texas	For covered physician covenants, S.B. 1318 sets a maximum one-year term, five-mile radius, and buyout capped at annual salary and wages at termination, alongside other conditions.	The changes apply to covenants entered into or renewed on or after September 1, 2025. Physician discharge without good cause has a separate protection. Enrolled act
Virginia	Section 40.1-28.7:8 prohibits covered employers from entering into, enforcing, or threatening to enforce non-competes with defined healthcare professionals.	The 2026 act preserves the treatment of agreements entered into or renewed before July 1, 2026 and includes specific exceptions. Code and Chapter 1113
Washington	The version in effect before June 30, 2027 uses earnings thresholds, disclosure requirements, and other conditions; a term over 18 months is presumed unreasonable.	The chapter also displays a future version voiding noncompetition covenants beginning June 30, 2027. Check the applicable version and proceedings date, not just the latest text on the page. Chapter 49.62
West Virginia	Covered physician-employer covenants are limited to one year and 30 road miles from the primary practice and are void upon employer termination.	The statute has practice-sale and owner exceptions and applies to contracts entered into, modified, renewed, or extended on or after July 1, 2017. Section 47-11E-2, exceptions, and applicability

For more context on entity, licensing, and launch decisions in two of these states, see Florida and Texas.

States where reasonableness and the facts matter

State	What the cited authority establishes	What it does not establish
Arizona	In Valley Medical Specialists v. Farber (1999), the Supreme Court rejected the particular physician covenant and required strict scrutiny of the employer's interest, physician hardship, and public injury.	The court did not hold that all physician covenants are unenforceable. Court opinion
Michigan	Section 445.774a allows reasonable protection of competitive business interests, considering duration, geography, and work; a court may narrow an unreasonable covenant.	It is a general employment provision, not a physician-specific statutory ban. Section 445.774a
New Jersey	In Community Hospital Group v. More (2005), the Supreme Court applied legitimate-interest, hardship, and public-injury factors and required a narrower geographic restriction.	It did not impose a categorical ban on physician covenants. Court opinion
New York	In Gelder Medical Group v. Webber (1977), the Court of Appeals enforced a physician partnership covenant it found reasonable in the circumstances.	An old case's radius or term is not a safe template for a new employment agreement. Court opinion
Wisconsin	Section 103.465 permits restrictions reasonably necessary to protect the employer and says an unreasonable restraint is unenforceable even as to a reasonable part.	It does not use Michigan's general power to narrow the covenant as its statutory rule. Section 103.465

The federal action and accessible state sources above were rechecked October 12, 2026. Michigan and Wisconsin summaries retain the source review recorded October 5, 2026; those legislative pages could not be reverified during this update. Have counsel confirm the current law before relying on either. The cited court cases illustrate their holdings, not a complete search for later decisions.

How is a non-solicit different from a non-compete?

A non-compete restricts competing work; a non-solicit restricts specified outreach or relationships. Confidentiality and medical-record obligations are additional issues. A state rule that invalidates one clause may leave others intact. Minnesota's statute, for example, expressly excludes nonsolicitation agreements from its non-compete definition. Minnesota section 181.988

Before communicating with patients about a move, review the contract and applicable patient-notice and records rules with counsel. Ask who sends the notice, what it may say, how urgent care and refills are handled, and how patients request records. Do not copy patient lists from the employer's system as a substitute for an agreed transition process.

What should you bring to a lawyer before resigning?

Bring the complete agreement and the facts needed to apply it. Include schedules and amendments, every renewal, ownership documents, the proposed new role, and the locations where you have practiced. Ask for a written assessment of the restrictions and a practical transition plan, including what needs negotiation before you give notice.

1. Map the restricted locations and activities against the proposed practice.
2. Confirm which contract date and legal version apply.
3. Review departure circumstances, notice, buyout, and any release or waiver.
4. Plan patient communication, ongoing care, and records access.
5. Resolve malpractice tail coverage and other exit costs.
6. Fold the approved timing and costs into the private practice launch plan.

Vye Health helps providers launch, run, and grow private practices.

Apply to Vye Health to discuss the business plan after identifying the contract questions that need legal review.

When you are ready to run the practice on Vye, see Vye Core, and pricing.