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Non-compete clause; please help!


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I am a new grad who was just offered a job in a primary care/urgent care clinic in Las Vegas, however,  there is a non-compete clause to include time during employment (3 year contract) and 2 years after termination of employment.  It specifies that I would not be able to work in a clinic within a 25 mile radius of each clinic (there are 2) which would encompass all of Las Vegas.   


 


1.  Does this sound like a standard non-compete clause?  If not, what is?


2.  Would this prohibit me from working in any primary care AND urgent care clinic?  Or would it be primary OR urgent care?


 


Please help a new grad excited for her possible first job!!  


 


Thank you.

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Every non-compete clause I've seen has been similar.  That being said, I agree with the above.  Don't sign it.  If it doesn't work out, for whatever reason, you'll likely have to move in order to get another job.  You don't want to do anything to limit your ability to be employed.

 

As for question number two, I have no idea how they would interpret it.

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peen50

here is an interesting link:

http://www.albrightstoddard.com/blog/bid/215574/Nevada-s-Treatment-of-Covenants-Not-to-Compete

personally i view noncompete as unfairly restrictive for our profession. i agree with the comments above to not sign this. what you are signing is a contract for indentured servitude, not an employment contract.

this is a great example of the need to cover issues like this in school. it is also something a state and national pa organization should pay attention to and lobby against.

on the other hand, you want a job, need a job. tread lightly here. I would obtain personal legal advice and then enter into any agreement with this employer with your eyes open. i think if an employer is heavy handed at this stage, it is indicative of what they are capable in the future.

good luck

george brothers pa-c

admiral-ackbar.jpg

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from what I  have read when these get challenged the courts look at the "reasonable" nature and the ability for you to make a living

 

As well in some states the are illegal for physicians, the courts put the health of a community, rightly, above the protection of a company.

 

LOTS of posts about this on the forum

 

summary

 

Don't sign it - just refuse

 

if they demand something (which is a red flag in itself about their view of you) I would offer a 6 month, 5 mile non-compete.  Then maybe go up to 9 months 10 miles.  Beyond this is to restrictive and likely would not hold up in court.  

 

On other point - most the time for a non-compete to be valid their has to be some 'consideration' paid - IE they have to buy it from you.  

 

 

 

 

Of course you don't want to take it to court so just politely decline signing it......

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 I would obtain personal legal advice and then enter into any agreement with this employer with your eyes open. 

Agreed, having a lawyer look over any contract is always a good option. In a major metro area 25 miles is completely ridiculous. If they really want to have you they'll negotiate to something reasonable. Otherwise I'd listen to Admiral Ackbar.

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My red flag is being a 3 year contract.  You are a new grad.  I wouldn't recommend signing anything for more then a year.  You don't even know what you like about medicine yet as a new grad. 

 

Also, how many companies actually go after former employees for violating non-compete agreements? I would think a small time FP office maybe, but big healthcare systems don't need to worry about one little provider putting a dent in their business.

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I would call the person you have been dealing with (call don't email - people are more likely to say yes when you talk to them directly). Simply say something like the noncompete makes me uncomfortable because it may limit my ability to provide for my (self, family, spouse - whatever the case may be) when my contract is finished. Is there any way we could move forward without it? Thank you so much for your offer.

 

Than just listen - if they reply with agreeable terms, go for it. If not, have the courage to walk away if it is something you feel strongly enough about.

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The above advice is good. 

 

Many PA contracts are just taken from a physician boilerplate contract and get a PA's name slapped on it. Especially in an urgent care setting where patients walk in, it is not like you will leave and take hundreds of patients with you. Tell them this is not typical for a PA contract.

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I'm currently in litigation for a restrictive covenant.  It's not fun.  Today was the preliminary hearing for the arguments for the injunction against me and I don't know where I will have to go for work when I finish my employment next week until the judge reviews all the paperwork.  It's a vague, unreasonably termed non-compete clause (IMHO...and my lawyer's opinion as well) which is what I have going for me.  It's still a scary experience to think I may be forced to sell my home to move somewhere far enough away that I can work and feed my family.

 

Summing up what I've read in this thread and personal experience, #1) read your proposed contract prior to signing, #2) politely refuse to sign a non-compete or negotiate something that feels reasonable, #3) make sure you can leave your contract earlier than your term length in some manner.  Looking back at the contract that I didn't read carefully when I signed it, I can only be fired, incompetent, or move far away to leave my current employment.  Regardless of the term length, make sure there is an out for you if you are in a bad situation.  The contract I signed wasn't written to benefit me, even though it outlines my salary, benefits and perks.

 

My lawyer states there is not any case law in New York State, and could not find any other in other states, of PAs being held to a restrictive covenant.  I believe he researched the same for NPs without result.  I believe as there is going to be a large increase in PAs and NPs over the next several years, there will most likely be more cases in many states soon and our respective organizational representatives should be looking into how to assist us, lobby for us, and help us litigate against restrictive covenants that are unreasonable.  

 

I'm new here but will try to keep things updated as they progress, if anyone's interested.

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I'm currently in litigation for a restrictive covenant.  It's not fun.  Today was the preliminary hearing for the arguments for the injunction against me and I don't know where I will have to go for work when I finish my employment next week until the judge reviews all the paperwork.  It's a vague, unreasonably termed non-compete clause (IMHO...and my lawyer's opinion as well) which is what I have going for me.  It's still a scary experience to think I may be forced to sell my home to move somewhere far enough away that I can work and feed my family.

 

Summing up what I've read in this thread and personal experience, #1) read your proposed contract prior to signing, #2) politely refuse to sign a non-compete or negotiate something that feels reasonable, #3) make sure you can leave your contract earlier than your term length in some manner.  Looking back at the contract that I didn't read carefully when I signed it, I can only be fired, incompetent, or move far away to leave my current employment.  Regardless of the term length, make sure there is an out for you if you are in a bad situation.  The contract I signed wasn't written to benefit me, even though it outlines my salary, benefits and perks.

 

My lawyer states there is not any case law in New York State, and could not find any other in other states, of PAs being held to a restrictive covenant.  I believe he researched the same for NPs without result.  I believe as there is going to be a large increase in PAs and NPs over the next several years, there will most likely be more cases in many states soon and our respective organizational representatives should be looking into how to assist us, lobby for us, and help us litigate against restrictive covenants that are unreasonable.  

 

I'm new here but will try to keep things updated as they progress, if anyone's interested.

 

 

Will AAPA step forward to help defend so as to set a precedent? 

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Help me understand ... Why would an employee NOT someone to work at a certain radius? We are talking about human lives here. I have never heard anything like this before. How strange is this? Is this the new norm? insane.gif

non-compete clauses are designed to keep employees at a practice.

for example, you come work for me for a yr as a new grad, I train you, etc, then you go work across the street for the competition once you know what you are doing and take your patients with you to the new practice...

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Guest Paula

I'm currently in litigation for a restrictive covenant.  It's not fun.  Today was the preliminary hearing for the arguments for the injunction against me and I don't know where I will have to go for work when I finish my employment next week until the judge reviews all the paperwork.  It's a vague, unreasonably termed non-compete clause (IMHO...and my lawyer's opinion as well) which is what I have going for me.  It's still a scary experience to think I may be forced to sell my home to move somewhere far enough away that I can work and feed my family.

 

Summing up what I've read in this thread and personal experience, #1) read your proposed contract prior to signing, #2) politely refuse to sign a non-compete or negotiate something that feels reasonable, #3) make sure you can leave your contract earlier than your term length in some manner.  Looking back at the contract that I didn't read carefully when I signed it, I can only be fired, incompetent, or move far away to leave my current employment.  Regardless of the term length, make sure there is an out for you if you are in a bad situation.  The contract I signed wasn't written to benefit me, even though it outlines my salary, benefits and perks.

 

My lawyer states there is not any case law in New York State, and could not find any other in other states, of PAs being held to a restrictive covenant.  I believe he researched the same for NPs without result.  I believe as there is going to be a large increase in PAs and NPs over the next several years, there will most likely be more cases in many states soon and our respective organizational representatives should be looking into how to assist us, lobby for us, and help us litigate against restrictive covenants that are unreasonable.  

 

I'm new here but will try to keep things updated as they progress, if anyone's interested.

 

Yes, keep us informed.  Can your lawyer call this a restraint of trade as your ability to work depends on your SP and now with leaving they are depriving you of your livelihood?  Contracts are not written for the benefit of the employee, ever. 

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To date, going to court has more to do with the injunction to prevent me from working at my next job.  If there is a preliminary injunction it will be temporary, then it will go to trial and there will be more arguments about the rest of everything.  Right now, if my lawyer can prove the non-compete clause I have is not valid, there is the possibility this is done.  There is still the breach of contract, which brings me back to my third point from my previous comments.  Make sure you can leave of your own free will.  The contract from my first job required 90 days notice if I was going to end employment with them.  I thought if I wanted to leave my current job and I gave my current employer 90 days that I was being generous and honorable, allowing him time to plan for staffing at the time of my departure.  Unfortunately, it just gave him more time to plan his offense in regards to this lawsuit.  In addition, when it comes to business/money - trust no one.  I felt I had a very good personal and business relationship with my supervising MD/employer and was given a lot of opportunity when it came to opening and building a new Urgent Care office.  When it became an overwhelming task to keep the office running at the expense my family and my son with Asperger's, I gave into an offer from the local hospital to take a job that gave me the schedule/income I wanted.  The job description is technically different, but there would be some indirect competition.  I was honest with my supervising MD/employer about the what, why, and where I was going.  It has resulted in me being sued.

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My request for rewording of a NCC, as well as an increase in hourly rate for compensation as a result of not being aware that a position I'm considering is as an independent contractor ("uh guys, it would've been nice of you to have mentioned this upfront") apparently isn't going over too well since I haven't received a response from any of the primaries.  I asked them to make the NCC less restrictive and to bump up the hourly rate, and quoted the hourly rates that had been attached in another thread for urgent care workers.  Since there are no benefits to this position I would in reality accept an extra $4/hr. though the survey said as much as $9/hr. more ("meet in the middle").  Close proximity and only 24-30 hours/week would be my side of the compromise.

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My request for rewording of a NCC, as well as an increase in hourly rate for compensation as a result of not being aware that a position I'm considering is as an independent contractor ("uh guys, it would've been nice of you to have mentioned this upfront") apparently isn't going over too well since I haven't received a response from any of the primaries.  I asked them to make the NCC less restrictive and to bump up the hourly rate, and quoted the hourly rates that had been attached in another thread for urgent care workers.  Since there are no benefits to this position I would in reality accept an extra $4/hr. though the survey said as much as $9/hr. more ("meet in the middle").  Close proximity and only 24-30 hours/week would be my side of the compromise.

 

 

IC status will not fly with the state nor the IRS in an UC setting - it is jut plain wrong

 

say no thank you

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