Bill Text: HI SB232 | 2015 | Regular Session | Introduced
Bill Title: Licensed Physicians; Employment Covenants or Agreements
Spectrum: Partisan Bill (Democrat 14-0)
Status: (Introduced - Dead) 2015-02-10 - The committee(s) on HTH/CPN deferred the measure. [SB232 Detail]
Download: Hawaii-2015-SB232-Introduced.html
|
THE SENATE |
S.B. NO. |
232 |
|
TWENTY-EIGHTH LEGISLATURE, 2015 |
|
|
|
STATE OF HAWAII |
|
|
|
|
|
|
|
|
||
|
|
||
A BILL FOR AN ACT
relating to employment agreements.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that a restrictive covenant not to compete with a former employer imposes a special hardship on licensed physicians, as these highly specialized professionals are trained to perform specific jobs. Because the geographic area of Hawaii is unique and limited, noncompete agreements unduly restrict future employment opportunities for physicians and have a chilling effect on the stability and progress of medical care offered within the State. Eliminating restrictive covenants for licensed physicians will stimulate Hawaii's economy by preserving jobs for licensed physicians and by providing opportunities for those physicians to establish new job opportunities in the State.
The purpose of this Act is to prohibit noncompete agreements and restrictive covenants that forbid post-employment competition of licensed physicians.
SECTION 2. Section 480-4, Hawaii Revised Statutes, is amended to read as follows:
"§480-4 Combinations in restraint of
trade, price-fixing and limitation of production prohibited. (a) Every
contract, combination in the form of trust or otherwise, or conspiracy, in
restraint of trade or commerce in the State[,] or in any section of this
State is illegal.
(b) Without limiting the generality of the
foregoing, no person, exclusive of members of a single business entity
consisting of a sole proprietorship, partnership, trust, or corporation, shall
agree, combine, or conspire with any other person or persons[,] or enter
into, become a member of, or participate in[,] any understanding,
arrangement, pool, or trust[,] to do, directly or indirectly, any of the
following acts[,] in the State or any section of the State:
(1) Fix, control, or maintain[,] the price of
any commodity;
(2) Limit, control, or discontinue[,] the
production, manufacture, or sale of any commodity for the purpose or with the
result of fixing, controlling, or maintaining its price;
(3) Fix, control, or maintain[,] any standard
of quality of any commodity for the purpose or with the result of fixing,
controlling, or maintaining its price;
(4) Refuse to deal with any other person or persons
for the purpose of effecting any of the acts described in paragraphs (1)
to (3) [of this subsection].
(c) Notwithstanding [the foregoing]
subsection (b) and without limiting the application of [the foregoing] subsection
(a) it shall be lawful for a person to enter into any of the following
restrictive covenants or agreements ancillary to a legitimate purpose not
violative of this chapter, unless the effect thereof may be substantially to
lessen competition or to tend to create a monopoly in any line of commerce in
any section of the State:
(1) A covenant or agreement by the transferor of a business not to compete within a reasonable area and within a reasonable period of time in connection with the sale of the business;
(2) A covenant or agreement between partners not to compete with the partnership within a reasonable area and for a reasonable period of time upon the withdrawal of a partner from the partnership;
(3) A covenant or agreement of the lessee to be restricted in the use of the leased premises to certain business or agricultural uses, or covenant or agreement of the lessee to be restricted in the use of the leased premises to certain business uses and of the lessor to be restricted in the use of premises reasonably proximate to any such leased premises to certain business uses;
(4) A covenant or agreement by an employee or agent not to use the trade secrets of the employer or principal in competition with the employee's or agent's employer or principal, during the term of the agency or thereafter, or after the termination of employment, within such time as may be reasonably necessary for the protection of the employer or principal, without imposing undue hardship on the employee or agent.
(d) Except as provided in subsection (c)(4), any employment contract, post-employment contract, or separation agreement containing a noncompete or nonsolicit clause relating to a licensed physician is prohibited. Such agreement shall be void and of no force and effect.
As used in this subsection:
"Licensed physician" means a physician or osteopathic physician licensed by the Hawaii medical board pursuant to chapter 453.
"Noncompete clause" means a clause in an employment contract, post-employment contract, or separation agreement that prohibits an employee from working in a specific geographic area for a specific period of time after leaving employment with the employer.
"Nonsolicit clause" means a clause in an employment contract, post-employment contract, or separation agreement that prohibits an employee from soliciting employees of the employer after leaving employment with the employer.
This subsection shall apply to all written, binding noncompete and nonsolicit clauses entered into after June 30, 2015, and to all amendments adding or amending noncompete and nonsolicit clauses in existing written agreements created prior to July 1, 2015."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect on July 1, 2015.
|
INTRODUCED BY: |
_____________________________ |
|
|
|
Report Title:
Licensed Physicians; Employment Covenants or Agreements
Description:
Prohibits noncompete agreements and restrictive covenants in employment contracts, post-employment contracts, or separation agreements that forbid post-employment competition of licensed physicians.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
