Governing Law - Physician Contract Glossary

Governing Law

Definition

Specifies which state’s or jurisdiction’s laws apply to interpret and enforce the contract.

Examples in Context

“This Agreement is governed by the laws of the State of Texas.”

“This Agreement shall be interpreted in accordance with the laws of the State of New York, without regard to conflict of law principles.”

"Any dispute arising from this Agreement shall be governed by the laws of the Commonwealth of Massachusetts."

Implications for Physicians

• Determines applicable statutes on covenants not to compete, malpractice claims, and dispute resolution.
• Impacts how legal disputes or contract interpretations are handled.
• Different states have varying laws on physician employment protections.

Negotiation Tips

• Request the contract to specify the law of the state where you will practice.
• If the employer insists on a different state, ensure the state’s laws are physician-friendly.
• Inquire if changes to state laws may automatically apply to your contract.

Red Flags and Pitfalls

• Employer selects a state with unfavorable laws for physician contract disputes.
• Contract uses vague language about which state’s laws apply.
• Confusion if you live in a different state from your employer’s headquarters.

Related Terms

• Location and Time Limits for Disputes
• Arbitration Clause
• Termination without Cause

FAQs

• “Can I request my home state's laws in the contract?”
  • Yes, but employers may prefer their headquarters’ state. Be prepared to justify why your state’s laws are fairer or more protective for physicians.
• “If I live in one state and practice in another, which law applies?”
  • Typically, the contract will specify one state’s law. If not, the law of the state where services are provided often applies.
• “Does the chosen governing law affect malpractice claims?”
  • Yes. Certain states have stronger protections or limitations on malpractice claims. Ensure the chosen state law aligns with your best interests.
• “Can governing law change after signing?”
  • Rarely, but some contracts may include a clause allowing updates to comply with new regulations. Clarify this during negotiations.

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.