In NY, Conn, Mass this is illegal to enforce.
Yeah, and way more than that... and adding more nearly every year (link below that is 2022 updated).
Cali, Colorado, NMex, Delaware and many others all don't enforce non-compete (for physicians) either. That absolutely does NOT mean that the employer won't try to put it in the contract anyways (and in those states, you can just ignore it since it'd get tossed... but still verify with lawyer).
NY and NJ are a bit of a gray area to my knowledge... ask a local attorney on them.
Some states - quite a few of them - hold up non-competes reasonably or very well, though. It's mostly the red states. It's important to know what the typical rulings are via local attorney and review of cases to see what radius were found reasonable or reduced/disregarded.
Non-compete really limits one's future job options and affects the amount of roots you want to lay in the area or how much time you want to spend actually getting to know the PCPs or hospital. And no wrong to give a group a decent try but then break off on your own or work for the local hospital or etc. It's common sense, and MDs do this stuff all the time too.
Non competes are pretty hard to enforce in general no matter where you are. Anyone in a proper business job will tell you how much of a joke non competes are this isn’t something exclusive to doctors.
It’s essentially a scare tactic into hoping you don’t leave the job. And honestly, questioning the non compete for an application/interview will raise a major red flag for your chance at getting the job right off the bat, especially because new grads are notorious for job hopping after the first year or two.
You have to be careful with this thinking. ^
In states where non-competes are clearly not enforced (red ones on
slide 2 here ), you are right. It's a bluff... paper tiger.
In many other states, the employer can BURY you financially and literally block your business. It is all variable based on locality.
Even in states where non-competes are not enforced or minimally allowed, the former employer can still sue you for alllll kinds of crap to drain your time and money (solicitation of patients, solicitation of refers, intellectual theft, employee solicitation, false advertising, breach of contract, etc etc etc). They know their pockets are much deeper (esp if it's a hospital), and they know slowing you down from opening or ramping up will help them keep more of the patients/refers. I know too many DPMs who have found this out firsthand with frivolous lawsuits. I have received phone calls from docs' attorneys litigating against my former employers (asking about locations, my contract, etc). I was
fully expecting it myself (and was well prepped for it with attorney and paperwork to quickly put it to bed).
People get funny about money. Underestimate that at your own risk.
Bottom line is
know what you are getting into, and attorney consult is $ well spent.
Too many podiatrists learn about their non-compete once they inevitably realize their employer is screwing them and they won't budge on money or partnership or whatever. Many of them took out a mortgage or laid roots in the city. Not good. I do agree not to generally question/negotiate non-compete with employer as I said above (that shows your hand)... just understand how it will play out and make the job accept/reject accordingly. Do not trust Google or SDN or anything.... it's too important, so verify with a competent area medical or employment attorney.