Both the AAUP’s MOA with UCONN Health on Non-Compete Provisions and the new State Law Public Act No. 16-95 Contain protections for You. These will apply to new appointment letters after July 1, 2016:
- The new law requires that non-competes be used only “when there is a legitimate business interest” Currently, not all our departments use non-competes. This clarifies that their inclusion is not automatic.
- UCONN Health non-compete clauses will calculate the 10 mile radius starts from “UCONN Health and/or your UCONN Health location.” The new law states that calculation is from the “primary site where the physician practices” or is “mutually agreed.” Hence, any new provision should measure from the location where you primarily practice. Originally, the administration wanted a 15 miles radius. Through bargaining, the union limited this to existing 10-miles radies.
- The new law states that a non-compete is unenforceable, where “the employment or contractual relationship is terminated by the employer, unless such employment or contractual relationship is terminated for cause” In short, if you voluntarly leave, the non-compete applies. If UCONN Health fails to renew your appointment, it cannot hold you to the non-compete.
- All non-compete clauses must be signed individually by the physician.
- The law defines the non-compete term as “any period of time after the termination or cessation of such partnership, employment” Occasionally, in the past, UCONN Health has measured the non-compete to run from the end of the appointment instead of the actual end of employment. Any new provision should make clear that the period runs from the end of employment
- The new MOA between the union and the administration provides that existing faculty who do not have such a clause in their appointment will not have one unless they accept a new role with a new contract. Emergency Medicine and Hospitalists will also not have not be subject to this provision.
Covenant Not To Compete
As you may be aware, it is common to have practice employment agreements between physicians and group practices. At UConn Health, our standard restriction post-employment is that during the twelve (12) months following your last day of employment as faculty at UConn Health, when separation from employment is the result of your voluntary resignation, retirement, or termination for cause, you cannot (1) establish an office and/or hospital practice engaged in the practice of medicine or (2) join a hospital, health system, group practice or, any other health care business entity engaged in the practice of medicine within a ten (10) mile radius from the primary UConn Health site where you practice. Primary site means the office, facility, or location where a majority of the revenue derived from your services is generated based on a twelve (12) month lookback period at the time of your departure.
You agree that the duration, scope and geographic area(s) applicable to this Covenant Not to Compete are fair, reasonable and necessary and that you have received fair compensation under this contract for such obligations. You further agree that these obligations will not prevent you from employment in your field.
You also agree that if you should leave UConn Health for any reason, you will not transmit, retain, copy, or otherwise collect patient demographic information for your use, and any written communications to patients about your departure must be pre-approved in writing by UConn Health.
If you violate this Covenant Not to Compete, you shall pay to UConn Health a sum equal to six (6) months of your annualized base salary. This amount shall be payable within thirty (30) days of entering practice in the proscribed area.
You understand and agree that a Covenant Not to Compete for your profession is of a special, unique and extraordinary nature and that the loss arising from a breach thereof cannot reasonably and adequately be compensated by money damages. Accordingly, UConn Health shall be entitled to injunctive or other extraordinary relief, in addition to any other remedies that may be available to UConn Health, including, but not limited to, the monetary relief described in this contract.