HB 1034

Present law provides that a restriction on the right of an employed or contracted healthcare provider to practice the healthcare provider's profession upon termination or conclusion of the employment or contractua l relationship (a "noncompete"" agreement) is reasonable if: (1) The restriction is set forth in an employment agreement or other written document signed by the healthcare provider and the employing or contracting entity; and (2) The duration of the re striction is two years or less and either: (A) The maximum allowable geographic restriction is the greater of a 10 -mile radius from the primary practice site o r th e county where the primary practice i s located; or (B) There is no geographic restriction, but the healthcare provider is restricted from practicing the healthcare provider's profession at any facility at which the employing or contracting entity provided services while the healthcare provider was employed or contracted with the employing or c ontracting entity. The healthcare providers to whom the requirements for a noncompete agreement apply under present law are podiatrists, chiropractors, dentists, medical physicians, osteopathic physicians, and psychologists. This bill declares void and unenforceable a restriction on the right of an y employee or contractor to practice the employee's or contractor's profession upon termination or conclusion of the employment or contractual relationship, except in cases of physicians from whom the employin g entity has made a bona fide purchase of the physician's practice and further provided that any such agreement must meet the reasonable time and distance limits and contain a buy-back option."