Tennessee legislation · 114th General Assembly

Tennessee HB1034: AN ACT to amend Tennessee Code Annotated, Title 50; Title 63 and Title 68, relative to covenants not to compete.

Status: Chaptered, May 15, 2026

Fiscal Summary NOT SIGNIFICANT Bill Summary Present law provides that a restriction on the right of an employed or contracted healthcare provider to practice the healthcare provider's profession upon termination or conclusion of the employment or contractual relationship (a "noncompete" agreement) is reasonable if: (1) The restriction is set forth in an employment agreement or other written document signed by the healthcare provider and the employing or contracting entity; and (2) The duration of the restriction is two years or less and either: (A) The maximum allowable geographic restriction is the greater of a 10-mile radius from the primary practice site or the county where the primary practice is located; or (B) There is no geographic restriction, but the healthcare provider is restricted from practicing the healthcare provider's profession at any facility at which the employing or contracting entity provided services while the healthcare provider was employed or contracted with the employing or contracting entity. The healthcare providers to whom the requirements for a noncompete agreement apply under present law are podiatrists, chiropractors, dentists, medical physicians, osteopathic physicians, and psychologists. This bill declares void and unenforceable a restriction on the right of any employee or contractor to practice the employee's or contractor's profession upon termination or conclusion of the employment or contractual relationship, except in cases of physicians from whom the employing entity has made a bona fide purchase of the physician's practice and further provided that any such agreement must meet the reasonable time and distance limits and contain a buy-back option. ON APRIL 16, 2026, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED HOUSE BILL 1034, AS AMENDED. AMENDMENT #2 r