What is a Reasonable Geographic Area for Physician Non-Compete Agreements?

There is no “rule of thumb” about what geographic non-compete restraints in physician contracts are reasonable, and medical practices need to consider what geographic restraints they need to put in place in order to protect a legitimate business interest, such as confidential information, trade secrets, goodwill, or patient base.

Physician Non-Compete Clauses

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.

The Fifth Circuit Says “Bye-Bye” to Conditional Certification in FLSA Collective Actions

In Swales, the Fifth Circuit Court of Appeals set out to clarify the “legal standard that district courts should use when deciding whether to send notice in an FLSA collective action.” Expressly rejecting the two-stage process described above, the Fifth Circuit clarified that: “Two-stage certification of § 216(b) collective actions may be common practice. But practice is not necessarily precedent. And nothing in the FLSA, nor in Supreme Court precedent interpreting it, requires or recommends (or even authorizes) any “certification” process.”

Which States Allow Blue-Penciling of Non-Compete Agreements?

States around the country vary in how they approach the enforcement of unreasonable non-compete agreements. While the majority of states allow their courts to “blue pencil” or rewrite restrictive covenants to make them reasonable, three states do not permit such reformation, and four states have no clear legal guidance on whether blue-pencilling is permitted, leaving employers in limbo.

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