Can You Compete Against A Noncompete Clause?

Posted by donna@healthlawcenterplc.com in Aug, 2018

 Do you have an existing noncompete clause in your contract or are looking to enter into such a contract?  If so, you should read the full article from Physicians Practice.  While addressing physicians, the information in this article is applicable to any healthcare provider being asked to sign a noncompete.

In most states, some form of competitive restriction can be found in physician (and other provider) employment agreements and will be enforceable if properly drafted. Competitive restrictions are typically intended to protect an employer from “unfair” competition once a provider’s employment has terminated; however, noncompete provisions can sometimes go beyond what might be considered reasonable in a particular state.

It should never be assumed that a noncompete provision is “enforceable” or “reasonable.” No lawyer can, or should, provide such a guarantee. The specialty of the medical practice, geographic location, and the facts and circumstances related to an employee’s termination can all play an important role in assessing enforceability of a restrictive covenant. Often, the length of time a physician worked for a practice, and the reason for a physician’s termination, can be important factors as well.

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