Test Drive Our New Site! We have some improvements in the works that we're excited for you to experience. Click here to try our new, faster, mobile friendly beta site. We will be maintaining our current version of the site thru the end of 2024, so you can switch back as our improvements continue.
Legislation Quick Search
07/21/2024 06:38 PM
Pennsylvania House of Representatives
Home / House Co-Sponsorship Memoranda

House Co-Sponsorship Memoranda

Subscribe to PaLegis Notifications

Subscribe to receive notifications of new Co-Sponsorship Memos circulated

By Member | By Date | Keyword Search

House of Representatives
Session of 2017 - 2018 Regular Session


Posted: January 4, 2017 10:14 AM
From: Representative Anthony M. DeLuca
To: All House members
Subject: Prohibiting the use of Restrictive Covenants Not to Compete by Institutions of Purely Public Charity (HB 744 of 2015)
In the near future, I will re-introduce legislation (HB 744 of 2015) to address a growing problem for doctors, nurses health care practitioners, and other employees who work for entities defined as purely public charities.

Employment contracts containing restrictive covenants not to compete are clearly a growing concern. My legislation will address this issue by prohibiting the use of non-compete clauses in all employment contracts with purely public charities. Entities currently designated as purely public charities would still have the ability to enter into non-compete clauses, however they would have to forfeit their designation as a purely public charity.

The purpose of restricted covenants is to protect a private business. Purely public charities are required to operate free of any private profit motive. Therefore, there is no legitimate reason for purely public charities to use non-compete clauses in their employment agreements. Unfortunately, these types of non-compete clauses have become all too common in the health care context.

As the trend of health care provider and hospital consolidations continues, physicians and other practitioners can find their employment options extremely limited. Employment contracts containing non-compete clauses are usually offered on a take it or leave it basis. This means health care practitioners, particularly young ones right out of school, have no option but to accept these contracts and their restrictive terms.

I ask you to join me in co-sponsoring this bill. Thank you.

Introduced as HB342