What Is a Noncompete Agreement in an Employment Contract?

[sirI, MSN, APRN, NP]

A restrictive covenant is a promise not to compete. Specifically, the language restricts an employee from practicing in the same specialty (or even the same industry) as the employer, within a set number of miles from an employer's business, for a set period of time after the employee leaves the employer's business. In most states, restrictive covenants are legal and enforceable, as long as they are reasonable. "Reasonable" means different things in different contexts. A judge will determine whether or not a clause is reasonable, if the matter goes to court. Even in states where restrictive covenants are not enforceable, employers don't want a prospective hire to have signed one, because the new employer wants no hassles, legal or personal, with a former employer

http://www.medscape.com/viewarticle/533855?src=mp

[spaniel]

Thanks for the post Siri. I had to sign a noncomplete clasue for my work. Now I have to wonder how "enforceable" it is to limit work for an entire industry and for an entire state. (In your post, there was the section/phrase that said "miles".) Well- the corporation I work for does consulting for a large portion of the state! I can easily see ,as you indicate, that no future employer would want to tangle with a noncompete clause. However, I question how enforceable such a clause would be in lets say I switched from my current psychological consulting to lets say, hospice work in long term care settings. Perhaps I'll PM you.

[sirI, MSN, APRN, NP]

Hello, spaniel,

I responded to your pm.

[ERNP]

Large clinic in Tennessee took physician to court to enforce non-compete clause. Tennessee Supreme Court threw it out as unenforceable. A good precedent I would say.

[augigi, CNS]

The bottom line is "reasonable". A court will not enforce a clause which prohibits an employee from gaining employment in a whole field. Unless there is direct competition and lost income involved, I think most would not enforce it. In fact, many US states have "right to work" clauses which prohibit non-competes.

As always, seek legal advice before signing anything!