What the statutes mean

You are allowed to have agreements with associate doctors that restrict them from working within a certain distance from your office for a certain period of time. However, if the restrictions for distance and time are not reasonable the entire agreement will be voided - even the part that may have been reasonable.

Practical advice

Employment agreements are often used by chiropractors for their associates. The agreements serve a practical purpose. The practice owner does not want to hire an associate and incur the cost of training and development, only to have that individual leave the practice and compete against them. Having an agreement that restricts the associate’s ability to open a competing practice within a certain number of miles and for a certain period of time protects the investment of the hiring doctor.

It is not unusual for a chiropractor to ask a colleague for a copy of their employment agreement. If you do so, be sure to have an attorney review the language concerning restrictions on competition. Do not rely on the other doctor’s agreement, even if they tell you they had the agreement reviewed by their attorney. If you do not have the agreement reviewed by an attorney, and the competition restrictions are voided, the value of your practice could be severely impacted.

Statute excerpts

103.465 Restrictive covenants in employment contracts. A covenant by an assistant, servant or agent not to compete with his or her employer or principal during the term of the employment or agency, or thereafter, within a specified territory and during a specified time is lawful and enforceable only if the restrictions imposed are reasonably necessary for the protection of the employer or principal. Any such restrictive covenant imposing an unreasonable restraint is illegal, void and unenforceable even as to so much of the covenant or performance as would be a reasonable restraint.