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Beginning September 1, 2025, Texas will significantly narrow the permissible scope of non-compete agreements with certain healthcare employees. The legislation, Senate Bill 1318 (“SB 1318” codified in Tex. Bus. Com. Code §...more
With the FTC Ban on non-competes essentially dead in the Courts of Appeal, various states and agencies have taken up the mantle to further limit or expand the use of restrictive covenants for certain populations in 2025....more
On April 23, 2024, the Federal Trade Commission (FTC) approved a final rule (the “Rule”) broadly banning all employee non-compete clauses, with limited exceptions. The Saul Ewing Labor and Employment Group prepared an alert...more
Health care employers face unique challenges and considerations when deciding whether to litigate non-compete agreements with physicians. However, in such a quickly evolving legal landscape, the decision to take the matter...more
Non-compete agreements are generally enforceable in Florida, if they are justified by a legitimate business interest and they are reasonable in time, area and line of business. However, a 2019 law invalidated non-compete...more
At the close of the 2023 session, the Connecticut legislature passed Senate Bill 9, “An Act Concerning Health and Wellness for Connecticut Residents.” Buried in this legislation are amendments to the state’s physician...more
Since July 1, 2016, Connecticut has had a law (CGS §20-14p) which, among other things, places a one year and 15 mile restriction on all physician non-compete agreements. Effective July 1, 2023, the law has been revised...more
As various states and federal agencies seek to prohibit or limit the use of non-competes, Connecticut joined the trend. Connecticut’s new legislation, SB 9, expands restrictions on the enforceability of physician non-competes...more
On June 5, 2023, the Connecticut Legislature passed Public Act No. 23-97, “An Act Concerning Health and Wellness for Connecticut Residents” (“the Act”). Sections 13 through 15 of the Act make important changes to Connecticut...more
On January 5, 2023, the Federal Trade Commission (FTC) issued a proposed rule that would prohibit employers from using noncompete agreements with their employees or independent contractors. Noncompete agreements are prevalent...more
As readers of this blog likely know, many states have entirely different statutory schemes for noncompetes in the healthcare industry. Indeed, while 47 states generally permit noncompetes, more than a dozen expressly prohibit...more
Non-compete covenants have become a standard component in physician employment agreements. Hospitals and private practices view these non-competes as an essential tool to protect their investment in their business and their...more
In addition to the typical reasonableness argument and other defenses against the enforcement of employment noncompetition covenants, in some cases courts will invalidate these agreements based on a public policy argument....more
On April 2, 2018, Colorado Governor John Hickenlooper signed Senate Bill 18-082 into law. Senate Bill 18-082 amends Colorado’s non-compete statute, C.R.S. § 8-2-113, and curtails the ability of a former employer to enforce a...more
The Colorado legislature recently added a paragraph to the state statute that governs non-compete agreements to permit physicians to continue to treat patients with rare disorders without liability. Signed into law by...more
It is always unpleasant for a healthcare entity or medical practice to have to sever ties with an employed physician, but it is sometimes necessary. Perhaps the physician has committed serious policy violations or lost an...more
We’ve written a lot this summer about the Massachusetts legislature’s latest failed attempt at non-compete reform. Two other states in New England, however, are able to claim accomplishments in that regard. Specifically,...more
For many years, employers have generally embraced a policy of utilizing at-will employment as often as possible, where employers and employees can end their relationship with each other at any time and for any (legal) reason....more