Amid growing discontent among physicians on noncompete agreements, which prohibit clinicians from joining a competing practice or setting up their own within a particular distance from their previous practice for a certain period of time, many states have amended their regulations.
Here is a rundown of noncompete rules across the U.S., as laid out by attorneys from the law firm Constangy, Brooks, Smith & Prophete on Aug. 29 in JDSupra:
Alabama: Noncompetes are enforceable only against key employees, such as those with access to trade secrets or confidential information, and are limited to two years.
California: Noncompetes are not enforceable and violate public policy.
Colorado: Noncompete agreements entered into on or after Aug. 10, 2022, cannot be used against workers who earn less than $112,500 in 2023.
District of Columbia: The wage threshold for noncompetes is $150,000 per year, or $250,000 per year for "medical specialists." Written notice of the noncompete must be provided within 30 days of an employee’s acceptance of employment as well as anytime the policy changes.
Georgia: Restrictions on solicitation of employees to have a geographic limitation.
Illinois: Employees who earn less than $75,000 for 2023 cannot be restricted by noncompetes. These thresholds will increase yearly through 2037. The state requires written notice to be given before entering into noncompetes: New employees must be given 14 days notice and existing employees must be given at least 14...
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