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Pennsylvania House of Representatives
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House Co-Sponsorship Memoranda

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House of Representatives
Session of 2019 - 2020 Regular Session


Posted: January 31, 2019 04:21 PM
From: Representative Anthony M. DeLuca
To: All House members
Subject: Rendering Non-Compete Clauses by Institutions of Purely Public Charity Void
There is a growing problem with non-compete clauses for doctors, nurses, health care practitioners, and other employees who work for 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. Non-compete clauses make their situation even worse.

The purpose of a non-compete clause is to protect a private business. There is no legitimate reason for these public charities to use non-compete clauses in their employment agreements.

Moreover, employment contracts containing non-compete clauses are usually offered on a take it or leave it basis. This means health care practitioners, particularly those right out of school, have no option but to accept these contracts and their restrictive terms.

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.

This is a companion bill to rendering non-compete clauses in health care employment contracts void. Last session this was HB 342.

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

Introduced as HB597