Signing a non-competition agreement makes me nervous. Are non-competition agreements legal?
Non-competition agreements may be requested by the hospital as a condition of the practice acquisition or as a condition of employment. The legality of a non-competition agreement depends on state law. Non-competition agreements that are overly broad may not be enforceable in the courts; however, restrictions that are reasonable in time and geographic scope may be. Longer and broader non-competition agreements may be allowed by the courts if they are negotiated as a part of a hospital’s purchase of a physician’s practice than if no practice acquisition is involved. On the other hand, non-competition clauses that are included in employment agreements generally extend for some period after employment is terminated, while non-competition provisions in purchase documents generally extend from the closing date of the acquisition. Since the time periods involved may be different, make sure to understand completely the non-competition restrictions included in both documents. In conclusion, th
