Many employers and Texas physicians enter into covenant not to compete agreements (also known as non-compete agreements). These agreements typically prevent a doctor from practicing medicine within a certain territory surrounding the employer for a certain period of time after the employment relationship terminates.
Keith Clouse, a Dallas, Texas employment lawyer who frequently advises doctors regarding non-compete agreements, notes that for a non-compete agreement to be enforceable against a physician, it must satisfy requirements in addition to the general requirements that apply to all non-compete agreements. For example, unlike in other industries, a physician’s employer must contractually provide the physician with the option to pay the employer for a release from the non-compete’s terms. Specifically, the covenant not to compete must provide for a buy-out at a reasonable price, or, at the option of either party, as determined by a mutually agreed upon arbitrator, or, if the parties cannot agree on an arbitrator, by an arbitrator of the court. If a non-compete agreement does not include a buy-out clause, a court will not enforce the agreement against a physician.
To speak to Mr. Clouse or to another employment law attorney about a non-compete agreement, please contact the Dallas employment lawyers at info@cdklawyers.com.