Bill Text: NJ A2003 | 2022-2023 | Regular Session | Introduced
Bill Title: Restricts use of restrictive employment covenants for physicians and nurses.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2023-06-05 - Reported and Referred to Assembly Oversight, Reform and Federal Relations Committee [A2003 Detail]
Download: New_Jersey-2022-A2003-Introduced.html
STATE OF NEW JERSEY
220th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION
Sponsored by:
Assemblyman HERB CONAWAY, JR.
District 7 (Burlington)
Assemblywoman ANGELICA M. JIMENEZ
District 32 (Bergen and Hudson)
SYNOPSIS
Restricts use of restrictive employment covenants for physicians and nurses.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning health care professionals and supplementing Title 45 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Except as provided in subsection b. of this section, any contract or agreement that creates or establishes the terms of a partnership, employment, or other form of professional relationship with a licensed physician, which includes any restriction of the right of the physician to practice medicine in any geographic area for any period of time after termination of the partnership, employment, or professional relationship, shall be void and unenforceable with respect to the restriction.
b. Nothing in this section shall be construed to render void or unenforceable:
(1) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice comprising 30 or more physicians to join any other hospital system or group practice comprising 30 or more physicians within a given geographic area;
(2) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice comprising 30 or fewer physicians to join any other hospital system or group practice comprising 30 or fewer physicians within a given geographic area;
(3) a restrictive covenant that prohibits a physician from leaving a federally qualified health center to practice medicine within a five mile radius of federally qualified health center for a period of time that is no longer than four years;
(4) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice when the hospital system or group practice provided the physician a unique incentive to join the hospital system or group practice, which incentive is expressly identified in the contract between the physician and the hospital system or group practice; or
(5) any remaining provisions of the contract or agreement that do not establish a restriction on the right to practice medicine in a geographic area.
c. For the purposes of paragraph (2) of subsection b. of this section, the term "unique incentive" may include, but shall not be limited to, commencing a new program or service, opening a new laboratory, providing a signing bonus of more than $50,000, or, in the case of a hospital system, opening a new practice group.
2.
This act shall take effect immediately, and shall apply to contracts and
agreements entered into by physicians on or after the effective date of this
act.
STATEMENT
This bill provides except as provided below, any contract or agreement that creates or establishes the terms of a partnership, employment, or other form of professional relationship with a licensed physician, which includes any restriction of the right of the physician to practice medicine in any geographic area for any period of time after termination of the partnership, employment, or professional relationship, is to be void and unenforceable with respect to the restriction.
Nothing in the bill is to be construed to render void or unenforceable: (1) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice comprising 30 or more physicians to join any other hospital system or group practice comprising 30 or more physicians within a given geographic area; (2) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice comprising 30 or fewer physicians to join any other hospital system or group practice comprising 30 or fewer physicians within a given geographic area; (3) a restrictive covenant that prohibits a physician from leaving a federally qualified health center to practice medicine within a five mile radius of federally qualified health center for a period of time that is no longer than four years; (4) a restrictive covenant that prohibits a physician from leaving a hospital system or a group practice when the hospital system or group practice provided the physician a unique incentive to join the hospital system or group practice, which incentive is expressly identified in the contract between the physician and the hospital system or group practice; or (5) any remaining provisions of the contract or agreement that do not establish a restriction on the right to practice medicine in a geographic area.
