Last week, the PA Chamber voiced opposition to legislation – H.B. 681 – that would prohibit noncompete agreements in the healthcare industry.

In a memo to the House Health Committee, the PA Chamber noted that employers seek to include restrictive covenants in employment contracts for a variety of reasons.  In the healthcare industry, for example, hospitals and independent practices invest considerably to recruit healthcare professionals.

“These employers should not be prohibited from pursing an agreement in which a potential hire commits, for a period of time, to refrain from leaving and starting a competing practice after the employer has made this investment to help facilitate the provider’s success.  These noncompete agreements do already have limits, however, and may be deemed unenforceable if found to be unduly restrictive or an impediment to patients’ access to care,” the memo states.

The bill was passed by the committee and now awaits further consideration by the full House.