Individuals who have invested in a medical degree may hope to become their own bosses. They may want to establish a standalone medical practice or a private medical company. That process frequently entails partnering with numerous other physicians and medical professionals.
Hiring for a business exposes the organization to significant liability. Employees can make mistakes that create liability for their employers. They can also engage in certain types of misconduct that can have negative consequences for the business, such as starting a competing practice in the same community.
The employment contracts for medical professionals are often relatively complex, and employers may want to integrate a variety of clauses that protect their organizations from litigation and unfair competition. Can those hoping to start medical businesses in Texas add non-compete agreements to their contracts?
Texas allows for restrictive covenants
Some states have prohibited the use of non-compete agreements in employment contracts. There have been attempts to ban non-compete agreements at the federal level, but the courts have struck down those rules.
Currently, neither federal law nor Texas state statutes prevent employers from requiring that medical professionals sign non-compete agreements as part of an employment contract. However, Texas law does limit the use of non-compete agreements.
Employers typically need to include appropriate limitations on the terms of the non-compete agreement. Limiting the agreement to a specific geographic region often helps ensure that it is enforceable. Similarly, it should only last for a specific amount of time. One of the most common mistakes with non-compete agreements is the use of overly broad language.
Additionally, the professional making the career concessions needs to receive something of valuable consideration in return for limiting their future entrepreneurial and employment opportunities. Employers need to ensure that the terms of the non-compete agreement comply with state law. They also need to monitor the conduct of employees after they leave the business if they hope to identify violations and enforce the agreement.
Partnering with an attorney familiar with the unique rules that govern medical businesses and Texas employers can help ensure that employment contracts extend appropriate protections that the business can enforce if necessary. Professionals aspiring to begin a medical business often need thorough employment contracts for optimal organizational protection.