Restrictive employment covenants are typically disfavored by law, as they can be burdensome to the employee and prohibit them from making a decent living after the termination of a former job. However, restrictive covenants in the medical industry are highly enforceable in some ways.
Restrictive covenants in the medical industry typically involve the following clauses:
- Non-compete
- Non-solicitation
- Confidentiality agreements
Both non-compete clauses and non-solicitation clauses are used in an attempt to restrict an employee’s post-employment activities so as to reduce unfair competition. In the medical industry, non-compete covenants generally prevent doctors from competing with their former employer in a specific region for a specified amount of time. In contrast, non-solicitation agreements temporarily prohibit doctors from soliciting former patients who were treated while the doctor was with the former employer. Sometimes, non-solicitation agreements cover the other employees within the practice as well, meaning that the former employee is prohibited from soliciting current employees for a specific amount of time.
Confidentiality agreements in the medical field are strictly enforced. Confidentiality agreements come in many forms, including patient confidentiality agreements and employer/employee confidentiality agreements. Both forms of these confidentiality agreements are indefinite. Patient confidentiality agreements echo and amplify laws such as HIPAA and prohibit the doctor from discussing a patient’s medical history and care with anyone, unless designated by the patient. These agreements are common in the medical industry. Employer/employee confidentiality agreements generally prohibit the former employee from disclosing pertinent practice information, such as marketing techniques, protocols, and procedures. Similar to patient confidentiality agreements, these are quite prevalent as well.
Drafting and enforcing restrictive covenants may be difficult. Prior to establishing such covenants, it is important to consult an experienced New York business and employment law attorney to discuss what should be included in the document. The New York business and employment lawyers at Blodnick, Fazio & Clark are skilled legal professionals who can assist you in determining how to draft restrictive covenants and other medical practice agreements. The attorneys at Blodnick, Fazio & Clark will guide and help you find your path to success. For more information or to schedule a consultation, contact our New York business and employment lawyers at (516) 280-7105 or (631) 669-6300.
