Have a Legal Question?

Get Free Answers From Experienced Lawyers!

Melbourne, FL asked in Health Care Law, Contracts and Employment Law for Tennessee

Q: Enforceability of physician non-compete in TN community

I am a physician working in healthcare in a small community in Tennessee. My non-compete agreement restricts me from working in my field or any other medical field within a 20-mile radius for two years after leaving my current position. Given these restrictions, what are the chances of this agreement being enforceable, and are there possible exceptions due to the impact on community healthcare?

3 Lawyer Answers
Anthony M. Avery
PREMIUM
Anthony M. Avery pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: There is a good chance that the other contracting party will enforce it if you set up shop. It is possible that it is absolutely enforceable, so the financial risks are high. But 20 miles is a small radius, so you should be able to find an office close to your chosen town. And 2 years is a short period to rent. I doubt some type of public policy will obviate contract terms.

Patrick A. Twisdale
PREMIUM
Patrick A. Twisdale pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: In Tennessee, physician non-compete agreements are generally enforceable but are subject to specific statutory limits under Tenn. Code Ann. § 63-1-148. The law permits non-compete restrictions for physicians as long as they are reasonable in both geographic scope and duration. Typically, the statute limits enforceability to a maximum of two years and either a 10-mile radius from the physician’s primary practice site or the county where the practice is located, whichever is greater. A restriction of 20 miles may exceed what is enforceable under Tennessee law, depending on how “primary practice site” is defined in your agreement and whether the 20 mile radius is still within the county where the practice is located.

There are also public policy considerations, particularly in small or rural communities where enforcing a non-compete might limit patient access to care. Courts may consider whether enforcement would create an undue hardship on the community or the physician, but such arguments are fact-specific and require legal analysis.

Because enforceability depends on the precise language of your agreement, the nature of your specialty, and the specific facts of your practice location, it’s not possible to fully assess your situation without reviewing the contract and relevant details. It is strongly recommended that you consult with an attorney experienced in healthcare employment law in Tennessee to evaluate your agreement, discuss potential defenses, and explore your legal options.

James L. Arrasmith
PREMIUM
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
Answered

A: In Tennessee, non-compete agreements are generally enforceable, but they must be reasonable in terms of duration, geographic area, and scope. A 20-mile radius and a two-year restriction could be seen as excessive, especially in a small community, depending on your specific circumstances and the nature of the healthcare services provided. Courts will often consider whether the non-compete imposes an undue hardship on your ability to earn a living, as well as the impact on local healthcare services.

If your non-compete limits access to necessary healthcare for the community, this could be a factor in determining whether the agreement is enforceable. In some cases, courts have found that overly restrictive non-competes may not be enforceable if they hinder public access to healthcare. You may want to discuss the specifics of your agreement with a lawyer to explore whether the restrictions are valid and whether there are any potential exceptions.

Additionally, you could explore the possibility of negotiating the terms of the agreement with your employer before leaving, especially if the agreement seems overly broad or impractical. If you are concerned about the impact of this agreement on both your future career and the community's access to healthcare, it would be wise to seek legal advice to better understand your options.

Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.