What Are The Differences Between Non-Competition Clauses and Non-Solicitation Clauses?
Employment contracts often contain Non-Competition Clauses or Non-Solicitation Clauses, sometimes both. Non-Competition Clauses attempt to prohibit the employee from practicing in the geographic area of the medical group within a certain time period of the end of the employment relationship. These clauses are illegal and unenforceable in California. Employers sometimes include the clauses in the contracts because they guess (often correctly) that a physician will not obtain legal advice and presume that the clause is valid and enforceable through legal means. Non-solicitation clauses attempt to prohibit the physician from recruiting patients or employees of the medical group to the physician’s new practice. Clauses strictly prohibiting solicitation are legal. However, many solicitation clauses purport to prohibit the physician from contacting patients regarding the physician’s departure from the medical group. This provision is unethical and illegal. Patients have an absolute right to