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IN HB1235
Bill
Status
1/11/2018
Primary Sponsor
Robert Morris
Click for details
AI Summary
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Employer hospitals are prohibited from requiring employee physicians or prospective employee physicians to sign noncompete agreements for any period following employment termination.
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Employer hospitals cannot enforce any existing noncompete agreements signed with former employee physicians, and any such contracts are declared void and contrary to public policy.
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Employee physicians, prospective employee physicians, and former employee physicians may bring civil actions against employer hospitals for violations.
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Courts may award actual damages, exemplary damages, court costs, and reasonable attorney's fees to prevailing physicians and may enjoin further violations.
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The law becomes effective July 1, 2018, and applies to hospitals licensed by the state department of health.
Legislative Description
Noncompete clauses prohibited in physician contracts. Provides that an employer hospital may not require that an employee physician or a prospective employee physician sign a covenant not to compete against the employer hospital for any period of time after the termination of employment with the employer hospital. Provides that an employer hospital may not enforce any covenant not to compete against the employer hospital that is signed by the employer hospital and a former employee physician who is separated from employment under any circumstances. Provides that an employee physician, a prospective employee physician, or a former employee physician may bring
Last Action
First reading: referred to Committee on Employment, Labor and Pensions
1/11/2018