Bill
Bill > S2435
summary
Introduced
05/07/2020
05/07/2020
In Committee
05/07/2020
05/07/2020
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 restricts the use of restrictive employment covenants, also known as non-compete agreements, for physicians and nurses in New Jersey. It deems any such covenants that restrict a physician or nurse's ability to practice in a geographic area for a period after the termination of their employment as void and unenforceable. However, the bill provides an exception for physicians that prohibits them from leaving a hospital system or large group practice (30 or more physicians) to join another similar-sized entity within a given geographic area. This exception does not apply to nursing contracts. The bill takes effect immediately and applies to contracts and agreements entered into by physicians and nurses after the effective date.
Committee Categories
Health and Social Services
Sponsors (3)
Last Action
Senate Health, Human Services and Senior Citizens Hearing (19:00 12/6/2021 The State House Annex has reopened to the general public. Visito) (on 12/06/2021)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| BillText | https://www.njleg.state.nj.us/2020/Bills/S2500/2435_I1.HTM |
| Bill | https://www.njleg.state.nj.us/2020/Bills/S2500/2435_I1.PDF |
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