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IN HB1357
Bill
Status
1/14/2019
Primary Sponsor
Robert Morris
Click for details
AI Summary
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Hospitals licensed by the Indiana state department of health are prohibited from requiring physicians to sign noncompete agreements as a condition of employment
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Existing noncompete clauses between hospitals and former employee physicians are declared void and unenforceable regardless of the circumstances of separation
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Physicians (current, prospective, or former employees) may file civil lawsuits against hospitals that attempt to enforce noncompete agreements
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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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Effective date: July 1, 2019
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 a civil action against an employer hospital that attempts to enforce a covenant not to compete.
Last Action
First reading: referred to Committee on Employment, Labor and Pensions
1/14/2019