If the worker accepts a restriction of competition when he is hired for the first time, the job can be sufficiently taken into account. However, in a recently closed case, the Court of Appeals found that the non-compete clause was not applicable in an employment agreement, since the contract worker ultimately agreed to a restriction on competition at some point and the employer did not grant an independent consideration at the time of the signing of the non-competition agreement. McKasson vs. Johnson, 178 Wash. About 422 (2013). The Tribunal justified this decision by the fact that there is no consideration if “one party must fulfill an additional obligation, while the other party merely respects what it promised in the original contract.” Labriola v. Pollard Grp., Inc., 152 Wash. 2d 828, 834, 100 P.3d 791, 794 (2004). Examples of independent counterparties for competition restrictions are higher wages, promotion, bonuses or access to protected information. Here are five tips for competition bans for dentists who want to open their practices in the future. There must also be reasonable geographical limits for existing non-competition prohibitions.
Courts may refuse to apply agreements that go beyond an employer`s market sphere. Lawyer David Cohen represents both individual dentists and dental practices in the United States. Cohen Law Firm, PLLC, is dedicated to helping dentists manage their practices by creating founding documents, partnership contracts, employment contracts and dental sales contracts. More information about it, like David Cohen, Esq. You can help yourself meet your dental practice needs you will find in www.cohenlawfirmpllc.com. To be valid, the agreement must be appropriate. The courts recognize that many businesses, including dentists, have legitimate interests in protecting the time and investments they make in new staff. Nevertheless, this interest must be counterbalanced by a worker`s right to occupational mobility in our market economy. Most dentists who have their practice will consider hiring an employee at some point.
Hiring an employee can allow the owner to have flexibility in their hours, while increasing the practice and generating additional revenue. However, given that the owner has established the practice, established long-term relationships with patients and established a good reputation in the local community, the owner should consider how to ensure that the client and the value of her business are protected from employees whose primary objective is to establish her own practice. As a result, dentists generally require contractors to sign a non-compete agreement as a condition of employment. A non-competition agreement prohibits the worker from practising in a specified geographical area for a specified period of time, so that the worker cannot compete with the employer after the cessation of the practice. In addition, these agreements often prohibit the partner from directly recruiting the employer`s clientele for a period of time. It is essential that the employer have the partner sign a well-developed agreement that protects the practice. Otherwise, the employer will have little impact on its former employees when they decide to open a competing business nearby. Similarly, an employee should urgently consider a lawyer reviewing his or her employment contract to understand the conditions and determine how his or her future employment opportunities may be limited. A young employee wishing to begin her dental career signs an employment contract with her new employer, which contains the following non-competition clause: “… the employee is prohibited from working, managing or owning another dental practice within 100 miles of that dental practice for a period of five (5) years.” How long will the agreement last? A dentist who sells a practice, for example, could decide to retire 5-10 years later, especially if he decides to retire early.