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Paging Doctor Smith! You Are Free to Practice Around the State!

Posted May 8, 2016
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Listen up doctors! Physicians and physician practices who are currently negotiating employment agreements, partnership agreements or otherwise joining a practice need to be aware of a recent law passed by Connecticut's General Assembly.  The law - which everyone expects Governor Molloy to sign - limits non-compete agreements for physicians to 15 miles in geographic scope and 1 year in duration. The bill, which you can read here, applies to covenants not to compete that are entered into, amended, extended, or renewed after July 1, 2016.  Importantly, the new law will impact physician-employers who simply employ doctors without the anticipation of giving the doctor an ownership interest in the practice.  In those cases, the covenant not to compete can be enforced only if the physician's employer offers to renew the employment contract (if it expires) or terminates the physician-employee for cause.

This new law joins other Connecticut statutes that address covenants not to compete for other occupations such as security guards (Conn. Gen. Stat. § 31-50b) and broadcast employees (Conn. Gen. Stat. § 31-50a).

Physicians and physician practices must consider the impact of this new law in negotiating new contracts, or extending or renewing current contracts, especially language governing "for cause" termination.   

About the Author

Business Litigation Attorney Anthony Minchella

Tony represents Fortune 50 financial services companies, retail giants, and small and large specialty products companies in employment litigation, trade secret and non-competition litigation, and unfair trade practice issues. When acting as local counsel, Tony, an adjunct professor of law on Connecticut Civil Procedure at Quinnipiac Law School, helps lead counsel navigate the nuances of Connecticut state and federal court practice. Tony graduated magna cum laude from Quinnipiac University School of Law. He passed the New Jersey, New York and Connecticut bar exams and then moved on to careers with large and small firms which led to his boutique litigation practice.