Does the DRA permit restrictive covenants and non-compete clauses?
Contract terms such as non-compete clauses or restrictive covenants that take effect after the contract term is over are barred. DRA rules do, however, require a liquidated damages clause be included. What is the liquidated damages clause that must be incorporated in to the employment agreement? The following language must be incorporated in to the employment agreement (note that the contract may include an additional liquidated damages clause as long as it is independent of this language): LIQUIDATED DAMAGES CLAUSE Any breach or non-fulfillment of conditions will be considered a substantial breach of this agreement by you. If there is such a breach (NAME OF EMPLOYER) may, at its option, terminate this agreement immediately. In addition, it is agreed that (NAME OF EMPLOYER) will be substantially damaged by your failure to remain at (NAME OF EMPLOYER) in the practice of medicine for a minimum of three years and that, considering that precise damaged are difficult to calculate, you will
