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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2017 - 2018 Regular Session


Posted: January 5, 2017 10:36 AM
From: Representative Anthony M. DeLuca
To: All House members
Subject: Prohibiting Restrictive Covenants Not to Compete in Health Care Provider Employment Contracts (HB 745 of 2015)
In the near future, I will re-introduce legislation (HB 745 of 2015) to address a growing problem for doctors, nurses and other health care practitioners across the Commonwealth, employment contracts containing restrictive covenants not to compete. My legislation will address this issue by prohibiting the use of non-compete clauses in health care practitioner employment contracts.

This bill is a companion bill to HB 744 of 2015, which pertains specifically to Institutes of Purely Public Charities.

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 most often 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.

These types of non-compete clauses effectively limit a practitioner’s ability to find a new employer, switch employers, continue seeing their patients and practicing medicine in their home community. In fact, in order to continue practicing, some physicians are forced to move to other states to avoid violating their contract.

These non-compete clauses can be so restrictive and anti-competitive that many states prohibit their use in certain professions. For instance, Pennsylvania will not enforce non-compete clauses contained in an attorney’s employment contract.

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

Introduced as HB346