For years now, there has been a growing pattern of disputes and litigations involving restrictive covenants in employment contracts between physicians and their employers (for example, hospitals and medical practices). The covenants, which restrict a physician’s ability, following cessation of employment with an employer, to practice his or her specialty within a specified geographic area for a specified timeframe, are a standard provision in such employment contracts. The reason for the prevalence of such covenants is that a medical provider-employer with an established patient base that has incurred the costs of hiring and training a new physician does not wish to see that physician leave and start a competing practice built on the hard work and expense of the employer.
Restrictive covenants in physician contracts are enforceable in New York, and this article will address the standards relevant to an employer’s attempt to enforce a restrictive covenant through an application for injunctive relief.
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