Restrictive covenants in physician employment agreements

Virtually all physician employment relationships are governed by employment agreements in which the physician and employer exchange promises. When embodied in contracts, promises are also known as "covenants." Certain covenants are restrictive in nature, including, most notably, covenants which prohibit competition ("non-competes"). Legal considerations regarding non-competes in particular center around the law of restrictive covenants in general. This article identifies legal issues which exist with respect to restrictive covenants under Pennsylvania law and offers certain caveats with respect to the negotiation of the non-competition components of the physician employment agreements.