Non-Compete Clauses

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

Jummy Biffett

Full Member
2+ Year Member
Joined
May 15, 2021
Messages
106
Reaction score
203
Any advice on how to deal with a non-compete clause when negotiating a contract? I think they're total BS and essentially are restriction of craft but I also understand why an employer would want to stifle out any potential competitors before hiring an associate. Any tips on addressing this issue with the employer (private practice solo doc) without blowing up the relationship?

Members don't see this ad.
 
I would approach it directly. In the past when I've dealt with this with PP contracts I've just asked them to reduce the mileage radius to 5mile from primary location. Make sure it is not all of the locations of the practice and only the primary location that you are expected to work out of. No more than 24 months. Law regarding enforcing non compete is state dependent. Even if it is BS and judge throws it out if you fight in court it is a hassle to go through that process.

Another thing to consider is if you leave this PP job will you want to stay in that area? If the answer is no then no need in haggling this. I took a job where I know if I hate the job I will move out of tat state and go somewhere else and therefore did not care to negotiate non compete.
 
  • Like
Reactions: 1 user
Any advice on how to deal with a non-compete clause when negotiating a contract? I think they're total BS and essentially are restriction of craft but I also understand why an employer would want to stifle out any potential competitors before hiring an associate. Any tips on addressing this issue with the employer (private practice solo doc) without blowing up the relationship?
If you want to seriously address this then I certainly think that you need to know what is legally enforced in your state and start there
 
  • Like
Reactions: 1 user
Good advice above... in some states they don't hold up at all and employee can start up across the street with former employer helpless (as long as departed isn't blatantly soliciting patients or staff or referral sources).

In others states, it's heavily in employer favor. You will get crushed if you try to go 80% to the edge of the radius. Consult an attorney if it's not clear on Google how it works in the state... should have an attorney for contracts anyways, so ask them to be sure our understanding's correct on how non-competes do/don't hold up in the area.

Typical is 2-5mi for urban and 5-10+ for rural. 2yrs is pretty standard. It should only include office(s) you're working at. Be aware that it will typically knock you out of nearby hospital(s). Many employers will play dirty and try to pretend they have 'satellite' business location near wherever you may go to push you away, but it won't be an issue if you didn't see patients at that made up "accounting office" or "billing office" or whatever.

As you have figured out, it's not good to negotiate hard on this if you want the job. You can blame your attorney for minor changes to it, but if you try to press hard and whittle non-compete down, they will suspect you might just use them as a step stone to get onto insurances, meet docs, then start your own. Negotiate on salary, bonus, buyout price instead.
 
Top