PRINTER'S NO. 882
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
745
Session of
2015
INTRODUCED BY DeLUCA, COHEN, D. COSTA, THOMAS, MILLARD, FRANKEL,
McNEILL, READSHAW, KIRKLAND, MURT AND QUINN, MARCH 9, 2015
REFERRED TO COMMITTEE ON HEALTH, MARCH 9, 2015
AN ACT
Limiting restrictive covenants in health care practitioner
employment agreements.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Health care practitioner." As defined in section 103 of the
act of July 19, 1979 (P.L.130, No.48), known as the Health Care
Facilities Act.
"Prior Patient." A patient to which a health care
practitioner rendered professional services in the health care
practitioner's scope of practice for which compensation has been
received by the health care practitioner, regardless of the
source of the compensation, within three years of the separating
event.
Section 2. Prohibition.
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Except as provided under section 3, a contract or agreement
that creates or establishes the terms of an employment
relationship with a health care practitioner that includes a
restriction of the right of the health care practitioner to
practice in a geographic area for a period of time after the
termination of the employment relationship or prohibits a health
care practitioner from treating a prior patient shall be void
and unenforceable regarding the restriction.
Section 3. Exception.
Section 2 must not be construed to render void or
unenforceable the remaining provisions of a contract or
agreement, including a buyout clause that requires a health care
practitioner to reimburse the employer for reasonable expenses
incurred in recruiting the health care practitioner and
establishing the health care practitioner's patient base.
Section 4. Buyout clause.
A buyout clause otherwise permitted by this section may
include an amount for liquidated damages provided the amount is
reasonable. A buyout clause shall be void if:
(1) the clause contains a term fixing unreasonably large
liquidated damages; or
(2) the employer terminated the employment relationship
actually or constructively.
Section 5. Applicability.
This act shall apply only to contracts entered into on or
after the effective date of this act.
Section 6. Effective date.
This act shall take effect in 60 days.
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