While the survival and enforceability of noncompete agreements remain uncertain, those that exist are still being challenged, and courts are scrutinizing the language contained therein. Courts have routinely enforced noncompete agreements that were reasonable in scope and duration and contained specific and unambiguous language. On the contrary, when noncompete agreements are overbroad and unclear, courts will either modify them or void them in their entirety. For those noncompete agreements that contain specific limiting language, the courts will view the language as consistently as possible to align with the intended purpose(s) of the agreements.
In a recent decision from the Ohio Court of Appeals, a nurse practitioner’s (“NP”) prior employer’s request for an injunction prohibiting her from working at a medical facility on that basis that her noncompete agreement prohibited the new employment was rejected. More specifically, the agreement was limited to “services involving the field of allergy or immunology”, thus not being an overly broad agreement. Her former employer argued that her new employment with an Ear, Nose and Throat (“ENT”) practice violated the noncompete. However, the NP argued that she was not in violation of her noncompete since her employment with the ENT practice was not specific to the “field of allergy or immunology.” The appellate court agreed with the NP and determined that the language in her noncompete agreement was written with the goal of preventing the NP from working at another allergy/immunology practice as opposed to working at a general ENT practice.
While courts are more likely to enforce noncompete agreements that are not overly broad and demonstrate a reasonable basis to protect the practice’s business interest, drafting a limited noncompete can lead to unintended limitations and result in an unenforceable agreement.
How Frier Levitt Can Help
If you are seeking to challenge or enforce a noncompete provision or require assistance in evaluating a noncompete, contact Frier Levitt to speak with an experienced healthcare employment attorney.
