Bill
Bill > A4003
summary
Introduced
05/04/2020
05/04/2020
In Committee
06/22/2020
06/22/2020
Crossed Over
Passed
Dead
01/11/2022
01/11/2022
Introduced Session
2020-2021 Regular Session
Bill Summary
This bill provides that covenants in a contract or agreement that creates or establishes the terms of a partnership, employment, or other form of professional relationship that restrict the ability of a physician or nurse to practice in a geographic area for any period of time after termination of the partnership, employment, or professional relationship, will be deemed void and unenforceable. The bill is not to be construed as invalidating any other provision of the contract or agreement. In addition, the bill provides that it will not invalidate restrictive covenants that prohibit a physician from leaving a hospital system or a group practice comprising 30 or more physicians to join any other hospital system or group practice comprising 30 or more physicians within a given geographic area. This exception will not apply only to nursing contracts.
AI Summary
This bill prohibits restrictive employment covenants that restrict physicians and nurses from practicing in a geographic area for a certain period after the termination of their partnership, employment, or professional relationship. However, it includes exceptions for restrictive covenants that prohibit a physician from leaving a large hospital system or group practice (30 or more physicians) to join another, or a physician from leaving a federally qualified health center or a hospital system/group practice that provided the physician with a unique incentive to join. The bill does not apply to existing contracts and agreements, only those entered into by physicians on or after the effective date of the act.
Committee Categories
Health and Social Services
Sponsors (3)
Last Action
Assembly Health Hearing (19:00 6/23/2020 Due to the public health emergency, the State House Annex remain) (on 06/23/2020)
Official Document
bill text
bill summary
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bill summary
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bill summary
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