restrictive covenant in contract

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

punk

Junior Member
15+ Year Member
Joined
Oct 23, 2005
Messages
100
Reaction score
0
Does any one have experience with restrictive covenant in their contracts such as the one that prevents them from practicing in the area for a year following termination of employment? How do you negotiate it? Any ideas.
 
Does any one have experience with restrictive covenant in their contracts such as the one that prevents them from practicing in the area for a year following termination of employment? How do you negotiate it? Any ideas.

you want an employment lawyer to look at those, they are not enforceable in some states...but don't take anyone's word on that....have the lawyer look it over
 
How do you find a good attorney to look over this?
 
Its tough. Depends on the employer, there are healthcare systems that have standard contracts for all physicians, and gave me a take it or leave it offer-something like 25 miles for 18 months after I leave (essentially ruling out any chance of practicing in the same city). They did not want to get into the business of dealing with their other physicians if they gave me a non compete that was less restrictive than the others.

Some are more negotiable-I was able to reduce one non-compete from 15 miles down to 5 miles. All you can do is ask and see what happens.

I have no experience with this aspect of things....but talking to some more senior people, I got the impression that non-competes are tough to enforce in reality, but you may need to spend lawyer related fees to get it done.

Also, there is no guarantee that things would not change down the line....if you get a good non compete deal now, there is no guarantee that your employer wont ask for a more stringent covenant in 2-3 years from now when your contract expires and you have less leverage.
 
You are right. I can't win this battle. In North east employers are pretty aggressive about enforcing these. I hope that these get diluted by the courts or AMA comes strongly against these. Interestingly, attorneys have made it illegal for themselves to put the non compete clause in their contracts because its against the right to practice their own profession and it affects the right of the public to choose their own attorney.
 
You are right. I can't win this battle. In North east employers are pretty aggressive about enforcing these. I hope that these get diluted by the courts or AMA comes strongly against these. Interestingly, attorneys have made it illegal for themselves to put the non compete clause in their contracts because its against the right to practice their own profession and it affects the right of the public to choose their own attorney.

Are the major academic centers implementing these?
 
Are the major academic centers implementing these?

Major universities don't seem to be implementing these. Community hospitals with residencies/ fellowships, private practice groups and hospitals seem to be doing this.
 
Top