SB 995 - HB 1034
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 8, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
SB 995 - HB 1034
SUMMARY OF BILL: Prohibits non-compete agreements for employees and contractors in
the state, except where explicitly permitted by law. Removes most statutory provisions that
previously allowed such restrictions for healthcare providers, including physicians and other licensed
professionals. Eliminates conditions that previously made non-compete clauses enforceable, such as
limitations based on duration, geographic scope, or employer type. Prohibits hospitals, healthcare
facilities, and other employing entities from restricting a former employee’s ability to practice their
profession after termination, except as permitted for physicians employed by hospital-affiliated
entities. Prevents the inclusion of non-compete terms in new or amended employment contracts.
Applies to contracts executed or modified on or after July 1, 2025.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• It is assumed that the proposed legislation will not have a significant fiscal impact on state
expenditures because it does not create new enforcement or oversight responsibilities for
the Department of Labor and Workforce Development, the Department of Health, or
Health Facilities Commission.
• The elimination of non-compete agreements primarily affects private employment contracts
and does not require state resources to implement or regulate.
• State-funded healthcare institutions and agencies can continue hiring and operating under
existing labor laws without incurring additional costs.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumptions:
• The proposed legislation does not significantly impact businesses because it does not
restrict the use of confidentiality or non-solicitation agreements.
• The proposed legislation does not impose new compliance costs or operational changes on
businesses.
SB 995 - HB 1034 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director