Your view of restrictive covenants
will likely depend on which side
of the agreement you find yourself.
You may have an established practice you developed through
hard work over a number of years. You now want to bring on an
associate. Perhaps this is even someone you see yourself transitioning your practice to down the road. It is likely that at the
beginning of your relationship you will be investing more in
terms of salary, education, training, overhead, professional dues
and marketing than you will receive in terms of increased
practice production. How do you (or can you) protect yourself
from developing this associate only to have him or her leave your
practice and steal or take “your” patients and other employees?
In this situation, you may want an employment agreement with
a restrictive covenant to prevent such a loss.
Perhaps you are a recent graduate strapped with overwhelming
student debt. You are anxious to practice your new profession
and just as anxious to start making money. The thought of
incurring more debt to open your own office is paralyzing. As a
result, you look for an opportunity to work for someone else (or
something else, like a corporate practice). New to the working
world and prior to starting, you are presented with a lengthy
agreement spelling out your obligations, including what you are
able to do should you separate from the job. Often times, such a
situation presents you with questions as to whether you should
accept the agreement. Is there room for negotiation? Or, are you
resigned to signing away your future?
Regardless of which side of the agreement you find yourself,
there are some common questions involved in all restrictive
covenant agreements. Your position as to these questions will
depend on how they impact you and how you may want to
temper them moving forward.
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