Hospital psychologists and non-compete clauses

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beginner2011

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I've heard some stories that many psychologists employed by academic medical centers have been subject to non-compete clauses during their employment. For example, you sign a contract to take a position as a clinical researcher at local university AMC. Your duties include 4 days/week clinical research (conduct of research, grant writing, data analysis, manuscript publishing, etc.) and practice 1 day/week in one of the clinics in an area related to your research. Then, because of the standard non-compete clause the AMC includes in all clinical practice contracts, you're not legally allowed to open a private practice within an X-mile radius of the medical center that you work in 1 day/week.

Is this common?

Also, does anyone have any information about clinical practice restrictions for early career psychologists funded by a research training grant like a T32 or F32 or K award?

I know the VA does not place restrictions like this on employees, so curious about what folks have seen outside VA.

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I've heard some stories that many psychologists employed by academic medical centers have been subject to non-compete clauses during their employment. For example, you sign a contract to take a position as a clinical researcher at local university AMC. Your duties include 4 days/week clinical research (conduct of research, grant writing, data analysis, manuscript publishing, etc.) and practice 1 day/week in one of the clinics in an area related to your research. Then, because of the standard non-compete clause the AMC includes in all clinical practice contracts, you're not legally allowed to open a private practice within an X-mile radius of the medical center that you work in 1 day/week.

Is this common?

Also, does anyone have any information about clinical practice restrictions for early career psychologists funded by a research training grant like a T32 or F32 or K award?

I know the VA does not place restrictions like this on employees, so curious about what folks have seen outside VA.
Not sure how common it is, but in many states non-competes (restrictive covenants) are not allowed/legally enforceable with psychologists as pertains to clinical work. I have one in my contract, but all parties know it in not enforceable (I'm in Massachusetts). The "spirit" of the ban on non-competes for psychologists (as well as physicians, social workers, and other clinical providers) is that nothing should get in the way of the public's access to healthcare, including mental health. In the same vein, their can be no restriction on seeing clients in a new job that you saw in an old one. Again- the public has the right to continuation of care that can't be interfered with by a non-compete. In fact, recent legislation may even require employers to pay any ex-employee for whom they enforce a non-compete (known as a "garden clause"- basically because they have to pay you to work in your garden. I HIGHLY encourage prospective employees to have any contracts reviewed by an employment attorney before signing.

That said, non-compete clauses may be enforceable for non-clinical work, including research (which also can be subject to copyright and intellectual property laws). In other words, you may not own your research or any products. Also, even if not legally contractually prohibited, you need to be very cautious about leaving a place and setting up shop next door, particularly if you are taking client's with you, as it could "look bad" and burn some bridges.
 
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Everything in a contract is negotiable at the time of your hiring. Read your contract carefully before you sign and advocate for the changes you need.
 
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Also, does anyone have any information about clinical practice restrictions for early career psychologists funded by a research training grant like a T32 or F32 or K award?

I know the VA does not place restrictions like this on employees, so curious about what folks have seen outside VA.

For those interested in this question, I found the information below.

FAQ for T32 applicants:

9. Can a trainee be supported on a NIH research grant at the same time he/she is receiving a stipend from a T32 grant?

No. Public Health Service funds may not be used to supplement an NRSA stipend. Trainees are required to devote full-time effort to the training program. Trainees may receive separate salary from an NIH grant when employed for services, such as laboratory technical assistance, on a limited part-time basis. Part-time is considered by NHLBI as up to 10 hours per week. Compensation may not be paid from a research grant that supports the same research that is part of the trainee’s planned training experience. Under no circumstances may the employment interfere with, detract from, or prolong the trainee’s approved NRSA training program.


Also, I learned about the NRSA postdoc payback agreement, which I was not familiar with. My understanding/summary is that if you leave the position before the end of the 2 years you may be expected to participate in research/teaching/clinical practice as a form of 'paying back' the funding you were awarded. It's unclear to me if someone exits their position and goes into private practice that this would qualify as "payback" but my read of it is that it would?

T32/F32 (NRSA) Payback Agreement:

Payback requirements:
 
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