SB417 Non-compete Clauses in Physician Contracts

June 6, 2016

On June 6, Governor Hassan signed SB 417, prohibiting geographic non-compete clauses in physician contracts.  The prohibition will take effect on August 7, 2016, for new and renewal contracts.

 

1  New Section; Physicians and Surgeons; Contract Restrictions Limited.  Amend RSA 329 by inserting after section 31 the following new section:

 

329:31-a  Certain Contract Restrictions upon Physicians Unenforceable.  Any contract or agreement which creates or established the terms of a partnership, employment, or any other form of professional relationship with a physician licensed by the board to practice in this state, which includes any restriction to the right of such physician to also practice medicine in any geographic area for any period of time after the termination of such partnership, employment, or professional relationship shall be void and unenforceable with respect to said restriction; provided however, that nothing herein shall render void or unenforceable the remaining provision of any such contract or agreement.  The requirements of this section shall apply to new contracts or renewals of contracts entered into on or after the effective date of this section.

 

2  Effective Date.  This act shall take effect 60 days after its passage.