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Understanding the Scope of Your Non-Compete

February 16, 2010

Even doctors make bad decisions when it comes to employment. Whether it's signing an employment agreement without understanding the terms, taking on a position with a hospital or clinic that doesn't operate the way you thought, or joining a team that doesn't share your values; sometimes you just end up in a place at which you don't want to be.

If that time comes and you are a party to a non-compete agreement, you need to know whether the agreement is enforceable and, if so, where you can or cannot work. In Illinois, there is often a mistaken perception that non-compete agreements are not enforceable. However, the case of Mohanty v. St. John Heart Clinic, S.C., 225 Ill. 2d 52, 866 N.E.2d 85 (Ill. 2006), the Illinois Supreme Court affirmed the enforceability of restrictive covenants for physicians. In that case, the court concluded that reasonable restrictive covenants amongst physicians do not limit patient access to physicians and encourage established physicians and practices to hire and train less experienced physicians. The court further determined that a decision to ban such agreements amongst physicians should be left to the legislature.

At the same time, not all non-compete agreements are written in a way that is reasonable and enforceable. Knowing what you an and cannot do before you move on and accept another position ensures that you avoid unnecessary legal expenses associated with defending a claim that you breached your agreement. At the very least, you should read your agreement carefully before accepting a new position.