Amid growing discontent among physicians on noncompete agreements, which prohibit clinicians from joining a competing practice or setting up their own within a particular distance from their previous practice for a certain period of time, many states have amended their regulations.
Here is a rundown of noncompete rules in six Midwestern states, as laid out by attorneys from the law firm Constangy, Brooks, Smith & Prophete on Aug. 29 in JDSupra:
Illinois: Employees who earn less than $75,000 for 2023 cannot be restricted by noncompetes. These thresholds will increase yearly through 2037. The state requires written notice to be given before entering into noncompetes. New employees must be given 14 days notice and existing employees must be given at least 14 days to review the agreement before it goes into effect.
Indiana: Noncompetes are enforceable only against key employees.
Minnesota: The state prohibits post-employment noncompetes. However, agreements signed on or before July 1, 2023, remain enforceable.
Nebraska: The state's courts will not under any circumstances modify a noncompete to make it enforceable.
North Dakota: Noncompetes are banned.
Wisconsin: Noncompetes are enforceable only against key employees with access to trade secrets or confidential or proprietary information.