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Bill > HB3227


OR HB3227

OR HB3227
Relating to restrictive covenants in employment contracts for medical professionals; prescribing an effective date.


summary

Introduced
01/13/2025
In Committee
01/17/2025
Crossed Over
Passed
Dead
06/27/2025

Introduced Session

2025 Legislative Measures

Bill Summary

The statement includes a measure digest written in compliance with applicable readability standards. Digest: The Act would stop companies that give medical care from telling their workers that they cannot work for someone else, say that the company is bad or speak out about the company’s bad acts. Stops companies from punishing those who speak out. The Act takes effect 91 days after sine die. (Flesch Readability Score: 70.1). Voids noncompetition agreements, nondisclosure agreements nondisparagement agreements and nonsolicitation agreements between certain business entities and medical professionals, with speci- fied exceptions, and prohibits the business entities from retaliating against the medical professional for violating the void agreements. Punishes retaliations as an unlawful employment practice. Takes effect on the 91st day following adjournment sine die.

AI Summary

This bill introduces significant restrictions on employment agreements for medical professionals, specifically targeting noncompetition, nondisclosure, nondisparagement, and nonsolicitation agreements. The legislation voids most such agreements between medical professionals and management services organizations (MSOs), with a few specific exceptions. These exceptions include agreements made during the sale of a professional medical entity where the medical professional owns at least 10% of the entity, or agreements between a medical professional and an entity where they have an ownership interest and are not under an MSO contract. The bill prohibits MSOs from taking disciplinary action against medical professionals who violate these void agreements or who report potential legal violations in good faith. Disciplinary actions, which include actions like demotion, transfer, or withholding work, taken in retaliation would be considered an unlawful employment practice. The bill defines key terms like "medical purpose" and differentiates between types of medical entities, and it applies to contracts entered into or renewed on or after its effective date, with some provisions specifically becoming operative on January 1, 2026. The overall intent is to protect medical professionals from overly restrictive employment contracts and provide them with more employment mobility and freedom of speech.

Committee Categories

Health and Social Services

Sponsors (9)

Last Action

In committee upon adjournment. (on 06/27/2025)

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