A written contract is known as a “non-compete agreement” that forbids an employee from running a rival New York company or working for a rival for a predetermined amount of time in a particular region.
You can include a non-compete clause in a general employment contract or a separate agreement.
Speaking with an experienced attorney is a sensible move, whether we are battling an unjustified restriction on a doctor’s ability to practice or defending an employer’s right to place reasonable limits on former employees. To find out more, visit this website!
How Does a Physician Non-Compete Agreement Work?
The majority of doctors are familiar with non-compete clauses. These are known as restrictive covenants not to compete in some legal contexts.
Employers routinely use these tools in the medical industry to shield their medical practice from former employees’ competitors.
When an employer has expended a lot of time and money to give a physician specialized training, a physician non-compete clause is highly relevant.
An employee of a physician practice would be unfair to leave abruptly after receiving this kind of training and open up a shop down the street.
What are the methods of enforcing non-compete agreements?
Any federal laws do not govern the use of non-compete clauses in physician contracts. A non-compete agreement’s enforceability is instead decided by state contract law.
Former employers in New York enforce non-compete clauses. A lawsuit is the primary method of enforcement.
The judge can enforce the non-compete agreement’s terms and conditions at the former employer’s request.
While standard contract law rules apply, there are additional problems when considering non-compete clauses in medical contracts.
Health Professionals and Non-Compete Agreements
New York is still a vibrant place for non-compete clauses. Courts typically uphold the provisions of agreements as long as they meet the standards mentioned earlier.
The legislation may, however, be changing a little. Courts may, for instance, carefully review non-compete clauses that significantly restrict a patient’s ability to get care or their choice of physician.
It is discouraged by the American Medical Association (AMA) that physicians enter into agreements that restrict their right to practice medicine for a set period or geographical area upon the termination of their employment.
Concern for the well-being of the public drives the AMA’s justification. In this regard, it has been said that “agreements should ensure that competition is not hampered, that continuity of treatment is not disrupted, and that the public doesn’t lose out on medical services.”