Restrictive Covenants – Enforceable Beyond A Written Agreement?

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Our traditional notions of freedom make it difficult to legally restrict a party’s freedom to choose where and for whom she will work. Yet, among healthcare professionals “restrictive covenants” are commonly utilized, and, when properly drafted, are often respected and enforced in court. A “restrictive covenant” is a contractual promise by an employee that she will not practice her trade within a certain geographic proximity of a former employer, for a certain period of time. Restrictive covenants (also referred to as non-compete and non-solicitation agreements) often appear in employment agreements, shareholder agreements, and contracts for the sale and purchase of professional practices.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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