Are you concerned about or searching for information regarding non-compete issues for a San Diego healthcare company? The structure of physician and healthcare related employment agreements and non-compete language must be limited in scope and carefully crafted here in San Diego and Southern California.
Federal and State Limitations on Non-Compete Agreements
Agreements which restrict when and where an individual can work after leaving a company – known as non-compete or non-competition agreements – are highly regulated by federal and California law and scrutinized by our courts. Why? The State of California, in practice, generally considers the right to earn an income to be very beneficial not only to the individual but to the success of society itself. Legislation passed in 2018 and enacted shortly after essentially makes non-compete clauses unenforceable here in California.
California took the lead on this issue and was the first state to pass comprehensive laws regarding the elimination of non-compete agreements. California has extremely restrictive non-compete laws which make it exceptionally difficult for any employer, including those in a medical or healthcare business, to prevail in Court when challenged on a non-compete clause.
The challenges of non-compete issues for a San Diego Healthcare company also extend to substantial limitations in federal law. In his first year as President of the United States, Joe Biden issued an executive order which further limits the use of non-compete tactics by employers across the country.
Misappropriation of Trade Secrets and Nonsolicitation Agreements in California
Legally, from a federal and state law perspective there are substantial non-compete issues for a San Diego healthcare company. However, The medical practice and healthcare business attorneys at the Watkins Firm have served the San Diego and Southern California medical and healthcare business community for four decades. It is possible to contractually limit the solicitation of former patients in specific circumstances. It is also possible to establish protections under federal and state laws regarding trade secrets.
While the courts do not favor non-compete agreements in principle, the goals of these agreements can be achieved when contracts are carefully crafted and applied in the right circumstances. It is possible to prevent employees in the medical and healthcare industry from taking properly identified and protected trade secrets (known as the misappropriation of trade secrets) to compete against your company or practice in the future.
A nonsolicitation clause is a legal promise for the employee of a Southern California or San Diego healthcare company or practice not to solicit patients served under their contract after they are fired or end their employment. The nonsolicitation clause can be extended to prevent “poaching” of employees, staff or other licensed professionals during or after employment. The violation of a nonsolicitation clause is a breach of contract which carries genuine legal and financial “teeth” (read “risk” for anyone who violates the agreement).
A recent decision by the First Appellate District Court (California) last year held that nonsolicitation clauses can be applied in the case of the sale of Goodwill of any business. This “Blue Mountain” case can apply to mergers and acquisitions in the San Diego and Southern California healthcare business community.
Proven Strategies Regarding Non-Compete Issues for a San Diego Healthcare Company
Are you searching for enforceable and proven strategies regarding nonsolicitation or non-compete issues for a San Diego healthcare company? There are substantial non-compete risks for employers in the Southern California and San Diego medical and healthcare industry.
The Watkins Firm has decades of experience serving the medical and healthcare business sector in San Diego and Southern California. We understand the proper application of contract terms of an employment agreement with specific protective language in a healthcare setting. We carefully craft medical and healthcare agreements which are tightly focused and protect the trade secrets, nonsolicitation interests, patients, employees and practices of our corporate, medical and healthcare business clients.
We invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
