Are Physicians Bound By Non-Compete Agreements in New York?
Short answer: Sometimes.
Restrictive Covenants (the ubmrella term whcih inludes non-compete agreements, as well as non-solicit and confidentiality agreements) are enforeceable only to the extent that the agreements are reasonably limited in: (1) time, (2) scope and geographical area, and (3) are based on a legitimate business purpose. The more over-reaching a restrictive covenant, the less likely it is to be enforceable. For example, a prohibition upon competing anywhere in the State of New York for a period of five years is less likely to be enforced than other, more limited requirements, such as 6 months and a 1-mile radius.
Should I Sign An Agreement With A Non-Compete Clause?
Sometimes, you do not really have a choice.
That is why it is usually a good idea to have a lawyer review the agreement before you sign it to help you gauge any restrictions that may be in the agreement. Your ability to negotiate the terms of a non-compete may turn on how rigid the employer is and how much the employer wants you to be a part of its medical practice. Nonetheless, it may be worthwhile to ask for the terms of the non-compete to be altered since the employer is unlikely to unilaterally change its standard agreement without such a request. Even if the employer refuses to alter the parameters of the restrictive covenant, you can go into the employment relationship with your eyes wide open and not be surprised by the restrictions to which you are subject if you later decide you want to move on.
“When in doubt, call a lawyer. We are nice and we will speak to you immediately.
— ALEX GRANOVSKY
Will I Be Allowed To Take Patients With Me to a New Employer?
Assuming a restrictive covenant is in place in the agreement, unless you bring patients with you to the employer, you likely will not be able to ask your patients to come with you to your new employer. Moreover, provisions that prohibit solicitation of patients are likely enforceable. Furthermore, privacy issues under state and federal law may arise if a doctor takes (without authorization) a list of patients from his or her former employer. Subject to the agreement of your employer, the inclusion of certain language in employment agreements may permit patients to be informed of your departure, and this is something with which an attorney can assist you.
What Can I Do If I Want To Leave My Current Employer and My Prospective New Employer Falls Within the Limitations of My Non-Compete?
There may be a couple of avenues, all of which likely involve negotiation with your old employer. If you and your employer mutually decide to end the relationship, the old employer may be incentivized to work with you on amendment of the terms of the restrictive covenant or may assure you no enforcement will be sought. If your new employer is anxious to have you begin working, your new employer may agree to make a payment to your old employer. And, if your departure is involuntary, a different standard may apply.
If you would like to discuss your situation with us, please feel free to call or email us at any time. You will be on the phone with an attorney within 24 hours.