Is a noncompete enforceable in Tennessee?

Non-compete agreements are enforceable against former employees, according to Tennessee law, as long as the agreements are reasonable and necessary to protect the employer’s legitimate interests, the Court of Appeals of Tennessee has ruled.

Are physician restrictive covenants enforceable?

Restrictive covenants limiting the activities of a physician may be disfavored, but they are not per se unenforceable. As with other restrictive covenants, the issue is whether the agreement not to compete is reasonable in scope and protects a legitimate interest of the beneficiary of the agreement not to compete.

How do you beat a non-compete agreement in Tennessee?

Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued.

How long does a non compete last in Tennessee?

(B) The duration of the restriction is two (2) years or less and either: (i) The maximum allowable geographic restriction is the greater of: (a) A ten-mile radius from the primary practice site of the healthcare provider while employed or contracted; or.

Would a covenant not to compete be enforceable if it prohibits a physician from practicing medicine for two years from the date of termination within a 10 mile radius of hospitals to which his former practice provides services?

As a general rule of thumb, if the restricted time frame is two years or less after termination of the contract, the time restriction will likely be considered “reasonable.” However, state laws vary on whether time restraints in excess of two years are enforceable.

Can a noncompete clause for a physician be enforceable?

In states where noncompetition clauses for physicians are enforceable, the provision must: 1) protect the employer’s legitimate business interest, 2) be specific in geographical scope, and 3) have a narrowly tailored durational scope. Each of these factors is described below.

What is a noncompete clause in a contract?

What Is a Noncompetition Clause? A noncompetition clause, also known as a covenant not to compete or a restrictive covenant, is a provision in a contract that precludes one party from engaging in competition with another party by working 1) in a particular field, 2) within a specific geographic area, and 3) for a stated period of time.

When to use a time restriction in a noncompete clause?

In negotiating the restricted length of time in a noncompetition clause, it is more common to have a longer time restriction when a physician is selling an ownership interest in a practice than for a physician entering into an employment relationship.

Who is the best lawyer for noncompete clauses?

If you have already signed an agreement with a noncompetition clause and you are considering your next career move, a lawyer can shed some light on a seemingly impenetrable clause. Steven M. Harris, Esq., is a nationally recognized healthcare attorney and a member of the law firm McDonald Hopkins LLC in Chicago.

Can a noncompete clause prevent a physician from practicing?

A well-written noncompetition provision will prevent a physician from practicing within a certain geographical area surrounding the employer or the employer’s hospital relationships and for a prescribed period of time after the termination of the physician’s employment.

Can a non compete agreement be disfavored in Tennessee?

It depends. Generally speaking, non-compete agreements, also called ‘covenants not to compete’, are disfavored in Tennessee. See Hasty v. Rent-A-Driver, Inc ., 671 S.W.2d 471 (Tenn. 1984). Courts interpret these agreements strictly in favor of the employee, in part because the agreement is a restraint on trade.