Bill

Bill > A1819


NJ A1819

NJ A1819
Restricts use of restrictive employment covenants for physicians and nurses.


summary

Introduced
01/09/2024
In Committee
01/09/2024
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

Except as provided below, this bill provides that any contract or agreement that creates or establishes the terms of a partnership, employment, or other form of professional relationship with a licensed physician, which includes any restriction of the right of the physician to practice medicine in any geographic area for any period of time after termination of the partnership, employment, or professional relationship, is to be void and unenforceable with respect to the restriction. Nothing in the bill is to be construed to render void or unenforceable: (1) a restrictive covenant that prohibits 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; (2) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice comprising 30 or fewer physicians to join any other hospital system or group practice comprising 30 or fewer physicians within a given geographic area; (3) a restrictive covenant that prohibits a physician from leaving a federally qualified health center to practice medicine within a five mile radius of federally qualified health center for a period of time that is no longer than four years; (4) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice when the hospital system or group practice provided the physician a unique incentive to join the hospital system or group practice, which incentive is expressly identified in the contract between the physician and the hospital system or group practice; or (5) any remaining provisions of the contract or agreement that do not establish a restriction on the right to practice medicine in a geographic area.

AI Summary

This bill restricts the use of restrictive employment covenants for licensed physicians and nurses. Except in certain cases, the bill voids and makes unenforceable any contract or agreement that restricts a physician's right to practice medicine in a geographic area after the termination of their partnership, employment, or professional relationship. However, the bill allows for some exceptions, such as restrictive covenants that prohibit a physician from leaving a large hospital system or group practice to join another, or from leaving a federally qualified health center to practice within a five-mile radius for up to four years. The bill also allows for exceptions where the physician was provided a unique incentive, like a significant signing bonus, to join the hospital system or practice.

Committee Categories

Health and Social Services

Sponsors (2)

Last Action

Introduced, Referred to Assembly Health Committee (on 01/09/2024)

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