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MO SB383

MO SB383
Creates provisions relating to covenants not to compete involving physicians


summary

Introduced
01/08/2025
In Committee
02/17/2025
Crossed Over
Passed
Dead
05/16/2025

Introduced Session

2025 Regular Session

Bill Summary

Creates provisions relating to covenants not to compete involving physicians

AI Summary

This bill establishes new legal provisions regarding covenants not to compete (employment agreements that restrict physicians from working for competing employers) in Missouri. A covenant not to compete is defined as an employment contract clause that prevents an employee from competing with their employer for a specified time period or within a specific geographic area. The bill stipulates that such covenants are only enforceable when a physician is providing healthcare services in a clinical setting and the employer is not a nonprofit healthcare entity exempt from federal income tax. For a covenant not to compete to be valid, it must have two specific limitations: it can last no longer than 365 days and cannot extend beyond a 50-mile radius from the physician's office address. This legislation appears aimed at protecting physicians' employment mobility while still providing some reasonable protections for employers, by placing clear, moderate restrictions on non-compete agreements in the medical profession.

Committee Categories

Labor and Employment

Sponsors (1)

Last Action

Second Read and Referred S Emerging Issues and Professional Registration Committee (on 02/17/2025)

bill text


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