In the wake of the nationwide injunction last year barring the Federal Trade Commission’s (FTC) attempted Noncompete Ban, states have continued to legislate the scope of enforceable restrictive covenants, especially noncompetes.

In particular, many states are legislating specific rules for restrictive covenants for certain providers in the healthcare industry. In addition to the other states we previously reported noted, the latest wave of such states to pass legislation regarding noncompetes for health care providers includes Montana, Indiana, Colorado, Oregon, and Utah.

Montana

Since the beginning of April 2025, Montana has passed two new laws, each limiting the scope of noncompetes and non-solicits for healthcare providers in the state. Previously, Montana had already banned noncompetes and non-solicits as to a variety of healthcare providers, including psychiatrists or addiction medicine physicians, psychologists, social workers, professional counselors, addiction counselors, marriage and family therapists, and behavioral health peer support specialists.

The first new law went into effect in mid-April 2025 and expanded the existing noncompete and non-solicit limits to cover naturopathic physicians, registered professional nurses, advanced practice registered nurses, and physician assistants, but it does not apply in the context of the sale and purchase of a medical practice.

Governor Greg Gianforte signed the second new law on May 19, 2025. It expands the existing noncompete and non-solicit ban to all licensed physicians, not just psychiatrists or addiction medicine physicians, but sets forth certain exceptions. The new law exempts not only contracts for the sale and purchase of a medical practice, but also provisions requiring physicians to repay loans, relocation costs, signing bonuses, educational expenses, and tuition reimbursement expenses. The second new law will go into effect on January 1, 2026.

Indiana

On May 6, 2025, Indiana Governor Mike Braun, signed a new law, effective July 1, 2025, that removes several barriers to mobility for physicians. As of the effective date, hospitals may not use any noncompete, non-solicits exceeding one year, or any non-service agreements with physicians. The new law also restricts hospitals’ use of TRAPs, or training repayment agreements.

The new Indiana law has several notable exceptions. It does not apply to: (a) contracts for the sale of a business entity where the physician owns more than 50% of the business at the time of the sale; (b) nondisclosure agreements (“NDAs”); or non-solicits that last a year or less and do not restrict patient interactions, referrals, clinical collaborations, or physicians’ professional relationships. 

Colorado

Colorado Governor Jared Polis signed a bill into law that further restricts noncompetes and non-solicits for certain medical providers in Colorado. The law, Concerning Limitations on Restrictive Employment Agreements, will go into effect on August 6, 2025. It prohibits noncompetes and non-solicits for physicians, physician assistants, advanced practice nurses, certified midwives, and dentists. The law explicitly permits such medical providers to supply patients with certain information before leaving a medical or dental practice, including the provider’s continuing practice of medicine/dentistry, their new professional contact information, and the fact of the patients’ right to choose a healthcare provider.

The new law specifically notes exemptions for NDAs and confidentiality provisions regarding trade secrets, and further qualifies the exemption for the sale of a business. For individuals owning a minority ownership share received as equity compensation or related to services rendered, the amendment includes a unique provision for calculating the maximum duration of an enforceable non-compete. The length of a noncompete in that context cannot exceed the total consideration received by the individual divided by the average annualized cash compensation received by the individual from the business during the preceding two years or the length of affiliation, whichever is shorter.

Oregon

Oregon Governor Tina Kotek signed a new law, effective upon her signature on June 9, 2025, that imposes additional restrictions on noncompetes, NDAs and other types of agreements of “medical licensees”, defined as individuals licensed: (i) to practice medicine; (ii) as a nurse practitioner; (iii) as a physician associate; or (iv) to practice naturopathic medicine. 

In certain circumstances, the new law imposes an ownership threshold on medical licensee noncompetes, mandates that the medical entity enforcing the noncompete provide the medical licensee with documentation of the professional medical entity’s protectable interest, and limits the noncompete to the three years after the date on which the medical licensee was hired.

Utah

Utah Governor Spencer Cox signed a new law on March 26, 2025 that went into effect on May 7, 2025 which largely regulates health care services “platforms” (defined as “an electronic program, system, or application through which a health care worker may accept a shift to perform a health care service or role, as an independent contractor, at a health care facility.”). The new law prohibits health care services platforms from requiring health care workers to enter noncompetes, and prohibits them from banning healthcare workers from finding or accepting shifts using another platform or accepting a shift of employment with a healthcare provider or facility.

Stay tuned to this blog in the coming months for more updates on healthcare noncompete legislation. Epstein Becker & Green, P.C. maintains a 50-State Health Care Supplement to its 50-State Noncompete Survey, available as a combined document here.  The 50-State Health Care Supplement details health care-specific exclusions and restrictions, including applicable statutes, for the states that have enacted them.