Connecticut 2019 Regular Session

Connecticut Senate Bill SB00377 Compare Versions

Version 1 (Old)

Version 2 (New)

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7	6		General Assembly Committee Bill No. 377
8	7		January Session, 2019
9	8		LCO No. 5924
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12	11		Referred to Committee on PUBLIC HEALTH
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14	13
15	14		Introduced by:
16	15		(PH)
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20	19		AN ACT PROHIBITING THE USE OF NONCOMPETE CLAUSE S IN
21	20		PHYSICIAN EMPLOYMENT CONTRACTS.
22	21		Be it enacted by the Senate and House of Representatives in General
23	22		Assembly convened:
24	23
25	24		Section 1. Section 20-14p of the general statutes is repealed and the 1
26	25		following is substituted in lieu thereof (Effective July 1, 2019): 2
27	26		(a) For purposes of this section: (1) "Covenant not to compete" 3
28	27		means any provision of an employment or other contract or agreement 4
29	28		that creates or establishes a professional relationship with a physician 5
30	29		and restricts the right of a physician to practice medicine in any 6
31	30		geographic area of the state for any period of time after the termination 7
32	31		or cessation of such partnership, employment or other professional 8
33	32		relationship; (2) "physician" means an individual licensed to practice 9
34	33		medicine under this chapter; and (3) "primary site where such 10
35	34		physician practices" means (A) the office, facility or location where a 11
36	35		majority of the revenue derived from such physician's services is 12
37	36		generated, or (B) any other office, facility or location where such 13
38	37		physician practices and mutually agreed to by the parties and 14
39		-	identified in the covenant not to compete. 15 Committee Bill No. 377
	38	+	identified in the covenant not to compete. 15
	39	+	Committee Bill No. 377
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46	44		(b) (1) A covenant not to compete that is entered into, amended, 16
47	45		extended or renewed prior to July 1, 2019, is valid and enforceable only 17
48	46		if it is: (A) Necessary to protect a legitimate business interest; (B) 18
49	47		reasonably limited in time, geographic scope and practice restrictions 19
50	48		as necessary to protect such business interest; and (C) otherwise 20
51	49		consistent with the law and public policy. The party seeking to enforce 21
52	50		a covenant not to compete shall have the burden of proof in any 22
53	51		proceeding. 23
54	52		(2) A covenant not to compete that is entered into, amended, 24
55	53		extended or renewed on or after July 1, 2016, until June 30, 2019, shall 25
56	54		not: (A) Restrict the physician's competitive activities (i) for a period of 26
57	55		more than one year, and (ii) in a geographic region of more than fifteen 27
58	56		miles from the primary site where such physician practices; or (B) be 28
59	57		enforceable against a physician if (i) such employment contract or 29
60	58		agreement was not made in anticipation of, or as part of, a partnership 30
61	59		or ownership agreement and such contract or agreement expires and is 31
62	60		not renewed, unless, prior to such expiration, the employer makes a 32
63	61		bona fide offer to renew the contract on the same or similar terms and 33
64	62		conditions, or (ii) the employment or contractual relationship is 34
65	63		terminated by the employer, unless such employment or contractual 35
66	64		relationship is terminated for cause. 36
67	65		(3) Each covenant not to compete entered into, amended or renewed 37
68	66		on and after July 1, 2016, until June 30, 2019, shall be separately and 38
69	67		individually signed by the physician. 39
70	68		(4) On and after July 1, 2019, no employment, partnership or 40
71	69		ownership contract or agreement entered into, amended or renewed 41
72	70		shall contain a covenant not to compete and each covenant not to 42
73	71		compete entered into, amended or renewed on and after said date shall 43
74	72		be void and unenforceable. Any physician who is aggrieved by a 44
75	73		violation of this subdivision may bring a civil action in the Superior 45
76	74		Court to recover damages, together with court costs and reasonable 46
77	75		attorney's fees, and for such injunctive and equitable relief as the court 47
78		-	~~deems appropriate. 48~~ Committee Bill No. 377
	76	+	Committee Bill No. 377
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	81	+	deems appropriate. 48
85	82		(c) The remaining provisions of any contract or agreement that 49
86	83		includes a covenant not to compete that is rendered void and 50
87	84		unenforceable, in whole or in part, under the provisions of this section 51
88	85		shall remain in full force and effect, including provisions that require 52
89	86		the payment of damages resulting from any injury suffered by reason 53
90	87		of termination of such contract or agreement. 54
91	88		This act shall take effect as follows and shall amend the following
92	89		sections:
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94	91		Section 1 July 1, 2019 20-14p
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96		-	PH Joint Favorable
	93	+	Statement of Purpose:
	94	+	To prohibit noncompete clauses in physician employment contracts.
	95	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	96	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	97	+	not underlined.]
	98	+
	99	+	Co-Sponsors: SEN. SOMERS, 18th Dist.
	100	+
	101	+	S.B. 377
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