Non-Compete Provisions Involving Physicians Restricted in Connecticut, Rhode Island

APPLIES TO

 Employers with Connecticut, Rhode Island Employees

EFFECTIVE

Varies; See Below

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Connecticut and Rhode Island join Massachusetts, Delaware, Colorado, Texas and Tennessee in enacting laws that restrict the use of non-compete provisions in relation to physicians. Summaries of the law in each state are included below.

Connecticut

Effective July 1, 2016, Connecticut now restricts new, amended or renewed physician non-compete agreements in the following manner: (1) duration cannot be longer than one year; and (2) location is restricted to up to 15 miles from the primary site of where the physician practices.  The non-compete agreement is voided if the physician’s employment or contractual relationship is terminated without cause.

Additional limitations on restricted covenants apply for agreements entered into, amended, or renewed after July 1, 2016 between physicians and hospitals, health systems, medical schools, or medical foundations formed by such entities.

Rhode Island

Effective July 12, 2016, Rhode Island’s new statute prohibits any agreements that restrict the right to practice medicine. Any agreement related to the conditions of employment that seek to limit a physician’s ability to practice medicine in any area, for any period of time after separation of employment, will be rendered void and unenforceable. Similarly, patient non-solicitation provisions for Rhode Island physicians will no longer be enforceable.  However, the rule does not apply to the purchase and sale of a physician practice, provided the restrictive covenant is less than five years in duration.

Action Items

  1. Contact local employment counsel to review current and future agreements concerning physician services for compliance with the new laws.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2016 ManagEase, Incorporated.

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