Rescinded Contract

[CANYRN]

Hi all,

I'm a new NP graduate and I'm still waiting to receive my state license. During my last semester at school, I was offered a job and I had signed a contract. It was agreed that my start date would be dependent on when I pass my boards and officially get licensed. Unfortunately, recently, the office has told me that due to low patient volume, they might not be able to support my employment and that they can break my contract.

I'm wondering if the non-compete clause still applies. The document states that I can't practice in within "[X] years of employee's employment relationship...within a [Y] mile radius." My line of thinking is that I was never an official employee because I don't have my license yet. It's hard enough finding a job as a new graduate...Any advice would be helpful.

[BCgradnurse, MSN, RN, NP]

Sorry this happened to you. They rescinded the contract, so you do not have to abide by any of the terms. They cannot stop you from making a living at another practice.

Go out there and find something better!

[sailornurse]

Never sign a no compete clause.

[Goldenfox]

There is no contract. They broke the agreement so it's off.

[PG2018]

Won't matter.

And NEVER sign non-compete clauses. How do NPs get wrapped up in this so badly? You'd think you were working in corporate product development. Don't be a sucker. If it's a glamour job and you have sign a non-compete then negotiate that away or tell them to stick it even if it involves going to work at a pain or STD clinic.

[bebbercorn]

What is a "non-complete clause" from a future NP? Thanks for clarifying in advance...

[PG2018]

What is a "non-complete clause" from a future NP? Thanks for clarifying in advance...

When you quit or get fired, you can't practice in the same (or potentially similar) capacity within a given radius (distance) or span of time.

You could have the contract state something like ______________ will not engage in the practice of pediatric advanced practice nursing within 100 miles for a period two years upon leave from XYZ Clinic (all in legalese of course). You could potentially see any variation. Just don't sign it. When you quit, you quit. Move on with life and do whatever you want. If that clause is a requirement for the job then don't take it.

[BostonFNP, APRN]

As others have said, sorry for the stress, but you do not have to worry about the non-compete clause. Truth be told even if you had worked there it is a very difficult thing to try and enforce

[bebbercorn]

How can a practice get away with that???

[PG2018]

How can a practice get away with that???

It's not uncommon in business. A medical practice is absolutely nothing but a business.

[gonzalezs]

I have a cousin who is a trial attorney in business matters. I spoke to him about your situation. He tells me that the practice never employed you. They did not provide any consideration and you did not provide any services to the practice. You had a contract with a covenant not to compete. The contract was revoked unilaterally by the practice. That means there was no contract - no performance by both parties. They can't have the cake and eat it too. My cousin tells me that most judges disfavor covenants such as this. You have an absolute right to work. Even with a valid covenant they cannot stop you from working. The practice did not disclose any of their trade secrets, patient lists, etc., to you. You have none of their confidential information. Thus, you shouldn't have any problems working within the geographical area. My cousin suggests that you should have a friendly attorney write a letter to the practice indicating that you are actively seeking employment in the same area, and you consider the contract nullified with no future obligations from either side. He bets that the practice will never respond to that letter because they do not want to spend any money on legal fees if they could avoid it (darn stinchy doctors I guess!). If they respond, and you ignore their threat, they have to go to court and get an injunction. My cousin thinks that they have a 1% chance to get it! So do not be afraid, go get your job, preferably across the hall from them!

[CANYRN]

Thanks so much for the detailed reply. I've actually been shadowing the practice since I signed the contract. I haven't had hands-on patient experience, but I have had excess to patient charts. I can't afford an attorney at the moment...I was thinking of asking the office manager directly to have it in writing that the contract has been broken and neither the employee nor the employer has any obligation to either party...

I have a cousin who is a trial attorney in business matters. I spoke to him about your situation. He tells me that the practice never employed you. They did not provide any consideration and you did not provide any services to the practice. You had a contract with a covenant not to compete. The contract was revoked unilaterally by the practice. That means there was no contract - no performance by both parties. They can't have the cake and eat it too. My cousin tells me that most judges disfavor covenants such as this. You have an absolute right to work. Even with a valid covenant they cannot stop you from working. The practice did not disclose any of their trade secrets, patient lists, etc., to you. You have none of their confidential information. Thus, you shouldn't have any problems working within the geographical area. My cousin suggests that you should have a friendly attorney write a letter to the practice indicating that you are actively seeking employment in the same area, and you consider the contract nullified with no future obligations from either side. He bets that the practice will never respond to that letter because they do not want to spend any money on legal fees if they could avoid it (darn stinchy doctors I guess!). If they respond, and you ignore their threat, they have to go to court and get an injunction. My cousin thinks that they have a 1% chance to get it! So do not be afraid, go get your job, preferably across the hall from them!