The U.S. has no national policy in regard to noncompete agreements, which prohibit clinicians from joining a competing practice or setting up their own within a particular distance from their previous employer for a certain period of time. This has led many states to create their own laws for or against the practice.
Here is a rundown of noncompete rules in the southern U.S., as laid out by attorneys from the law firm Constangy, Brooks, Smith & Prophete on Aug. 29 in JDSupra:
Alabama: Noncompetes are enforceable only against key employees, such as those with access to trade secrets or confidential information, and are limited to two years.
District of Columbia: The wage threshold for noncompetes is $150,000 per year, or $250,000 per year for "medical specialists." Written notice of the noncompete must be provided within 30 days of an employee's acceptance of employment as well as any time the policy changes.
Georgia: Restrictions on solicitation of employees must have a geographic limitation.
Louisiana: Noncompetes must identify the parishes/counties encompassed by the agreement by name.
Maryland: Noncompetes can be enforced only on employees earning more than $15 per hour, or $31,200 annually — the lowest wage threshold of any state with wage requirements. Effective Oct. 1, the threshold will increase to $19.88 per hour ($19.20 for small employers).
Virginia: Employees must earn a minimum of $70,000 to be eligible for noncompete agreements. This threshold does not apply to workers whose earnings are based on commissions, incentives or bonuses.