What is a restrictive covenant? How big of an area is fair for a restrictive covenant?
A restrictive covenant is a prohibition against certain competitive activities both during and after the term of the agreement. It may include an agreement not to solicit other employees, vendors, or payers of the practice for some period of time, and an agreement not to compete within a certain geographic area for some period of time. The covenant will be enforced by a court of law if reasonable in geographic scope and time. The doctor should assume that the covenant will be enforced and should negotiate it accordingly. The size of the area for the restrictive covenant varies depending on the setting (rural, suburban, or urban). A contract for a rural practice may include a restrictive covenant that covers a radius of 100 miles, while a physician contract in an urban could be only 10 blocks. The question is this: Will the restrictive covenant cause you to relocate your home and family should you leave the medical practice? If you are looking to stay in the area for a long time, then t
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