What is a restrictive covenant nurse practitioner?

Nurse practitioners (NPs) are being offered employment agreements. Restrictive covenants require an NP to promise-up front-not to compete with an employer when the present employment ends. Bonus formulas specify conditions under which an employer rewards an NP for superior performance.

What is a typical non-compete clause?

A standard non-compete agreement is a formal agreement between an employer and employee that states that the employee will not engage in any employment activities that are in competition or conflict with their primary job.

Are non competes enforceable against doctors?

Non-competes in employment agreements are generally unenforceable in California, so this restriction applies to physician agreements as well. The law explicitly states that such non-competes are unlawful because they restrict patient access to physicians and increase healthcare costs.

What is a restrictive covenant in healthcare?

Restrictive covenants impose restrictions upon you as an employee as a way to protect the legitimate business interests of the employer. These are common in employment agreements and contracts in a variety of industries, including medicine and healthcare.

Is a non-compete enforceable in CA?

In California, agreements that prevent an employee from competing against a former employer are generally unenforceable. The California Business and Professions Code treats such noncompete agreements as against public policy and void.

How do I get out of a non-compete?

Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.

Do hospitals have non-compete?

Non-compete covenants have become a standard component in physician employment agreements. Hospitals and private practices view these non-competes as an essential tool to protect their investment in their business and their patient base.

How do I get out of a non compete?

What do you need to know about a non compete contract?

A “covenant not to compete” (CNC), or non-compete contract, is governed by state rather than federal law, and the general term covers three aspects: Traditional non-competes prohibit the employee from joining competing business (es) identified either by name or description, during a specified period of time and within a defined geographical area.

What is fair when it comes to a noncompete clause?

Fairness is not really the issue with noncompete clauses, also called restrictive covenants. None are fair because all require the employee or prospective employee to give up future employment opportunities. The employer has no legal right to restrict an employee’s future options.

When to consult an attorney for a non-compete agreement?

Another time to consult an attorney: If you’re asked to sign a non-compete as a condition of getting severance when you’re being terminated. In fact, it’s useful to get legal advice before signing anything during a layoff or termination.

Do you have to sign a non-compete if you get fired?

Or you might be asked to sign one in order to get severance if you’re fired. More businesses are requiring non-competes—and enforcing them—even for non-corporate, non-executive jobs as a yoga instructor, camp counselor or office intern. Employers who don’t use non-competes should consider whether they should start doing so.