Senator Jay Morris has proposed a Bill that will significantly limit the use of employment-related agreements that limit a primary care physician’s ability to practice medicine. Senate Bill 385 would prohibit the use of any employment contract or agreement to restrict the practice of medicine by a licensed primary care physician, except for certain limited situations.
For example, employers could only enforce a non-compete provision against a primary care physician whose was terminated for “just cause.” In addition, such a non-compete provision could only restrict the physician from competing for a maximum of one year from the termination of his or her employment contract or agreement. (The current maximum period is two years.)
The geographic area in which the physician could not compete would be limited to the parish in which his/her office was physically located and one contiguous parish.
Any agreement in violation of the new statute would be null and void.
If you employ primary care physicians, and if you utilize non-compete language in your employment agreements, you need to follow the progress of this Bill.