Covenant Not to Compete - Physician Contract Glossary

Covenant Not to Compete

Definition

A contract clause preventing you from practicing medicine within a certain area and timeframe after leaving your employer.

Examples in Context

“Physician agrees not to practice within 10 miles for two years after employment ends.”

“Upon termination of this Agreement, Physician shall not provide medical services within a 15-mile radius of Employer's primary practice location for a period of 18 months.”

“In the event of contract termination, Physician agrees not to engage in clinical practice at any competing healthcare facility within 5 miles for 1 year.”

Implications for Physicians

• Limits future employment options in your area.
• May force relocation after employment ends.
• Can impact family stability and established patient relationships.

Negotiation Tips

• Negotiate shorter terms and smaller geographic scopes.
• Request a clear buyout option to exit the restriction.
• Ask for an exception for urgent care, telemedicine, or non-clinical roles.

Red Flags and Pitfalls

• Unreasonably large geographic areas that restrict practice excessively.
• Overly long restriction periods (e.g., 3+ years).
• Failure to specify what types of practice are restricted.

Related Terms

• Geographic Scope
• Buyout Amount
• Nonsolicitation Clause
• Injunctive Relief

FAQs

• “Are non-compete clauses enforceable?”
  • Yes, but enforceability depends on state laws. Courts often uphold reasonable restrictions that protect legitimate business interests.
• “How far can a non-compete restrict me?”
  • Geographic limits vary but are often tied to where the employer does business. Typical ranges are 5–15 miles.
• “Can I negotiate out of a non-compete?”
  • Yes. You may request a shorter period, a smaller radius, or a clear buyout option to exit the restriction.
• “What happens if I violate a non-compete?”
  • Employers may seek legal action, including financial penalties or an injunction preventing you from working in the area.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.