Noncompete and Contract

[Dermatology PA]

I am a dermatology PA in the process of re-signing a contract.  I have been with a practice for almost 10 years and am now going part time.  They want me to sign a non-compete that will prevent me from working locally in dermatology (not just as a PA but as a consultant, manager, employee, etc) for 2 years after the job ends.  I told them I was not willing to sign that so they came back and added a clause that says if I am discharged involuntarily without cause, the noncompetitiion clause shall be null and void.  My boss says they have to protect the practice.  I also feel I have to protect myself.  I have never signed a noncompete with them in 10 years.    I fear I will be let go if I don't sign.  If I do sign, I wouldn't be able to work in the only field I know if I were to leave the practice.  Any advice on what to do?

[rev ronin]

The best way to "protect your practice" is to treat your employees fairly.

 

Having said that, they certainly don't want you working for their competition since you're dropping hours, which makes sense.  Offer them a while-employed non-compete that terminates when your employment does, or alternatively, agree to notify them of all your external work--I have the latter expectation at my job.

 

You can also try to negotiate a productivity bonus geared towards incentivizing your part-time work instead: will they give you a carrot instead of a stick?  If not...

[Dermatology PA]

They are giving me a productivity bonus not what I wanted.  But I think they fear I might take the offer and look elsewhere or get a better offer down the road and leave so they are locking me in with this noncompetition clause.  My husband says don't sign.  I just don't want to be the one who thinks the grass is greener on the other side and realize after the fact its not.  Plus I have a pretty good thing going at this practice.  

[Gaijyn]

Then offer them the the non-compete while employed option. 2 years is a long time and if you agree to that you will be hamstringing yourself if something occurs. I can see where they want you to stay, but 2years is a lot. 6 months I could see (though doubt I would agree to personally). Offer the while employed option mentioned above. It seems like the best compromise.

[Banuchi]

I'm curious, what is the distance of the non-compete?  My employer had a 2-year, 15 mile radius and I said, "No Thank you"    We ended up with a 1-year, 7.5mile radius.   That worked for me.  I've spoken with many other local PAs and the majority state that they will not sign if there is a non-compete.

[dukepa]

I am going through the same issue right now - negotiating a new contract with a non-compete.  The proposed non-compete is 6 miles and 2 yrs, but I will request a smaller radius and shorter term.  I personally don't see the need for a non-compete for PAs -- I believe non-competes were originally intended for physicians to prevent them from opening a competing practice nearby.  PAs cannot open our own practice (at least in my state)... I have to go where the work is.  In addition there is no "intellectual property" I'm going to bring from one practice to another, and my contract states I cannot recruit my patients (which I agree with).   I think the non-compete makes the physician and attorneys happy, and that's why they include it.