Pennsylvania has inked a law limiting noncompete agreements for certain healthcare providers, lawyer Craig Brooks from Houston Harbaugh wrote in JDSupra July 23.
The law applies to physicians, osteopathic doctors, certified registered nurse anesthetists, certified registered nurse practitioners and physician assistants.
The law restricts noncompetes signed on or after January 1, 2025, and noncompete agreements signed prior to this date will be unaffected until they expire. It also requires healthcare employers to notify patients within 90 days of a covered provider leaving an organization.
According to the report, the law is to avoid deterring healthcare providers from working in or leaving Pennsylvania and to counterbalance large hospital systems' power.
Under the new law, noncompetes are permitted in Pennsylvania if:
- The post-employment noncompete is shorter than one year and the employment departure was not due to a dismissal by the employer
- The noncompete is as part of the acquisition of an ownership interest in the employer that includes the power to direct the management and policies of the employer
- The noncompete requires practitioners who voluntarily leave the practice to reimburse the employer for its reasonable expenses directly due to relocation, training and establishing a patient base, among other stipulations