Connecticut 2020 Regular Session

Connecticut Senate Bill SB00143 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 1430 1 of 3
4	4
5	5	General Assembly Raised Bill No. 143
6	6	February Session, 2020
7	7	LCO No. 1430
8	8
9	9
10	10	Referred to Committee on PUBLIC HEALTH
11	11
12	12
13	13	Introduced by:
14	14	(PH)
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19	19	AN ACT PROHIBITING COVENANTS NOT TO COMP ETE INVOLVING
20	20	PHYSICIANS.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. Section 20-14p of the general statutes is repealed and the 1
25	25	following is substituted in lieu thereof (Effective July 1, 2020): 2
26	26	(a) [For purposes of] As used in this section, [: (1) "Covenant not to 3
27	27	compete"] "covenant not to compete" means any provision of an 4
28	28	employment or other contract or agreement that creates or establishes a 5
29	29	professional relationship with a physician licensed pursuant to this 6
30	30	chapter and restricts the right of [a] the physician to practice medicine 7
31	31	in any geographic area of the state for any period of time after the 8
32	32	termination or cessation of such partnership, employment or other 9
33	33	professional relationship. [; (2) "physician" means an individual licensed 10
34	34	to practice medicine under this chapter; and (3) "primary site where 11
35	35	such physician practices" means (A) the office, facility or location where 12
36	36	a majority of the revenue derived from such physician's services is 13
37	37	generated, or (B) any other office, facility or location where such 14
38	38	physician practices and mutually agreed to by the parties and identified 15 Raised Bill No. 143
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40	40
41	41
42	42	LCO No. 1430 2 of 3
43	43
44	44	in the covenant not to compete.] 16
45	45	(b) [(1) A] Any covenant not to compete [is valid and enforceable only 17
46	46	if it is: (A) Necessary to protect a legitimate business interest; (B) 18
47	47	reasonably limited in time, geographic scope and practice restrictions as 19
48	48	necessary to protect such business interest; and (C) otherwise consistent 20
49	49	with the law and public policy. The party seeking to enforce a covenant 21
50	50	not to compete shall have the burden of proof in any proceeding. 22
51	51	(2) A covenant not to compete that is entered into, amended, 23
52	52	extended or renewed on or after July 1, 2016, shall not: (A) Restrict the 24
53	53	physician's competitive activities (i) for a period of more than one year, 25
54	54	and (ii) in a geographic region of more than fifteen miles from the 26
55	55	primary site where such physician practices; or (B) be enforceable 27
56	56	against a physician if (i) such employment contract or agreement was 28
57	57	not made in anticipation of, or as part of, a partnership or ownership 29
58	58	agreement and such contract or agreement expires and is not renewed, 30
59	59	unless, prior to such expiration, the employer makes a bona fide offer to 31
60	60	renew the contract on the same or similar terms and conditions, or (ii) 32
61	61	the employment or contractual relationship is terminated by the 33
62	62	employer, unless such employment or contractual relationship is 34
63	63	terminated for cause. 35
64	64	(3) Each covenant not to compete entered into, amended or renewed 36
65	65	on and after July 1, 2016, shall be separately and individually signed by 37
66	66	the physician.] that is entered into, amended, extended or renewed on 38
67	67	or after July 1, 2020, shall be void and unenforceable. The party seeking 39
68	68	to enforce a covenant not to compete, entered into, amended, extended 40
69	69	or renewed prior to July 1, 2020, shall have the burden of proof in any 41
70	70	proceeding. 42
71	71	(c) The remaining provisions of any contract or agreement that 43
72	72	includes a covenant not to compete that is rendered void and 44
73	73	unenforceable, in whole or in part, under the provisions of this section 45
74	74	shall remain in full force and effect, including provisions that require 46
75	75	the payment of damages resulting from any injury suffered by reason of 47 Raised Bill No. 143
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77	77
78	78
79	79	LCO No. 1430 3 of 3
80	80
81	81	termination of such contract or agreement. 48
82	82	This act shall take effect as follows and shall amend the following
83	83	sections:
84	84
85	85	Section 1 July 1, 2020 20-14p
86	86
87	87	Statement of Purpose:
88	88	To prohibit covenants not to compete involving physicians.
89	89	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
90	90	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
91	91	underlined.]
92	92