Whether a medical practice can bind a physician with a non-compete agreement depends on where the medical practice is located and which state’s law governs the contract. Some states – California, Oklahoma, Alabama, North Dakota, Massachusetts, and Rhode Island – either prohibit all employment non-compete agreements or physician employment non-competes specifically. Meanwhile, Texas, New Mexico, Colorado, Indiana, Tennessee, West Virginia, District of Columbia, Connecticut, and Delaware have special rules regarding physician non-competes.
Category: employee violating non-compete
Are Non-Compete Agreements Enforceable if the Employee is Terminated?
Are non-compete agreements enforceable if the employee is terminated? The answer depends on which state the employee is in, as each state has its own laws regarding the enforceability of non-compete agreements.
Non-Solicitation Agreements in Texas
In Texas, client non-solicitation agreements are subject to the same rules as the non-compete agreements. Therefore, they must be “reasonable” and “not impose a greater restraint than is necessary to protect the goodwill or other business interest” of the employer.
Texas Employer Ordered to Pay Healthcare Employee’s Attorney’s Fees in a Non-Compete Dispute
A recent decision from the Thirteenth Court of Appeals in Texas serves as a cautionary tale for Texas employers seeking to enforce their non-compete agreements. In this case, a company that provided surgical assistants to surgical facilities and physicians sued a former employee for breaching his 2-year non-compete covenant, which prohibited him from “in any way” offering his services to any “client institutions or client surgeons” of his former employer.
Are Worldwide Non-Compete Agreements Enforceable?
Worldwide or global non-compete agreements with key employees can be enforceable where they are related to legitimate business interests, employees’ duties include a substantial exposure
Non-Compete Agreements: Garbage In, Garbage Out
A confusing, ambiguous, or imprecise non-compete agreement will yield poor results in court. In other words: garbage in, garbage out.