If you were to leave your current employer, would you be able to practice anywhere you want?
Many employment contracts and professional service agreements contain non-compete clauses, provisions that can restrict you from practicing within a specific geographic area or at specific employers, like a competing hospital or physician organization.
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For example, you may have a provision in your employment agreement that looks like this:
“For a period of one year after termination of employment, employee is restricted from providing services to or entering employment as a physician with a hospital operating in Michigan.”
The typical non-compete provision generally contains an element of time (one year in the above example), a geographic location (Michigan), and a specific workplace or work type (hospital, physician) that is to be restricted.
When you are under a non-compete clause, if you were to leave your current employer and practice with a restricted organization, then your former employer could file a lawsuit to prevent you from practicing in your new position.
Not only can a non-compete clause cost you your next job, but these contract provisions can also significantly burden your ability to progress in your career. Some employers won’t even consider you a viable candidate for a position while you’re still under a non-compete clause.
What should you do if your contract has a non-compete clause in it?
We can review your contract and help you understand the extent to which the contract could impact your future career moves.
We can advise you on options so you can make your next career transition without breaching the non-compete provision.
We can negotiate on your behalf with your employer to avoid these restrictive covenants in future agreements and contracts.
We help our clients understand their contractual obligations and negotiate for more acceptable terms.
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