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Should You Compete
With a Non-Compete?

By John R. Allbert, MD, and John Buric, Esq.

W hen I first arrived in Charlotte 30 years ago, I soon                     Making the decision to move forward can be daunting. Even when
                    realized that many of the physicians I knew had       your case is strong, your former employer may threaten to force
                    switched practices at some point in their career.     you to spend excessive amounts of money on legal fees or force
                  This also is common among bankers, accountants          you to move out of town. I have spoken with physicians who have
                                                                          gone through this in the past, and they compare it to going through
and, particularly, lawyers. Individuals had their own reason to switch    a divorce. Things can be said with the intent of intimidating and
                                                                          creating fear. My advice is to not allow yourself to get angry. It is
companies or practices, but from my perspective, it usually boiled down   simply a strategy and should not be taken personally.

to a mismatch in practice style, a desire for a cultural change, or more    I hear from many individuals who want more autonomy or are
                                                                          dissatisfied with future compensation options, and others who are
likely than not, an opportunity to earn more income.                      tired of certain responsibilities and just want to focus on taking
                                                                          care of patients. No matter your concern, I want to encourage you
Twelve years ago, I made the decision to make a career change. I          to look seriously at your options and do what is best for you and
                                                                          your family, not only for now but for the future. Before you do
always had planned to go into private practice, but making such an        anything, meet with an attorney who has experience in winning and
                                                                          not just negotiating a settlement. Develop a strategy that you both
Twelve years ago, I                  important decision sometimes         agree on before you resign from your position. I know my decision
                                     can be daunting. Unfortunately,      to move beyond legal threats to pursue my goals was one of the best
                                                                          decisions I ever made.
made the decision                    I had signed a contract with
to make a career                     a non-compete clause. I                  NATIONAL HEALTH &
change. I always                     questioned its validity and           WELLNESS OBSERVANCES
                                     consulted a couple of attorneys
                                                                                        MARCH 2018
had planned to go                    for advice. The first one I met
into private practice,               with recommended I buy out                                    American Red Cross Month
but making such an                   my non-complete as a way of                                     Athletic Training Month
important decision
sometimes can be                     saving face for everyone. He                                Brain Injury Awareness Month
daunting.                            stated, “This is what really                                 Colorectal Awareness Month
                                     everyone does.” This option                          Developmental Disabilities Awareness Month
                                     did not appeal to me since I
                                                                                                        Eye Donor Month
                                     felt strongly I had a very strong                                 Hemophilia Month
                                     case. I met with John Buric
                                                                                                          Kidney Month
                                     and we developed a plan before                                      Nutrition Month
                                                                                                     Save Your Vision Month
I turned in my resignation. First, Buric advised me that in order                           Workplace Eye Health and Safety Month

for a non-compete clause to be enforced, it must fulfill ALL of the                      March 1-6: Aplastic Anemia and MDS Week
                                                                                               March 2-9: Sleep Awareness Week
following five criteria:                                                                       March 5-9: School Breakfast Week

•	It must be in writing and signed by the employee.                                      March 11-17: Pulmonary Rehabilitation Week
                                                                                                    March 14: Kick Butts Day
•	It must be exchanged for a valid consideration, (I did not feel I was
                                                                                             March 18-24: Poison Prevention Week
compensated adequately enough to sign the non-compete).                                    March 20: Native HIV/AIDS Awareness Day

•	It must be reasonable as to time.                                                          March 27: American Diabetes Alert Day

•	It must be reasonable to geographical territory, (long duration and

narrow territory or similarly short duration and larger territory often

is reasonable).

•	It must be narrowly tailored to protect a legitimate business interest

and not in violation of public policy (in my example, as a maternal-

fetal medicine specialist, the community may be harmed if I had to

leave the area).

Buric stated our courts recognize that a client-based restriction also

can be reasonable in lieu of a territorial restriction. Any non-compete

that prohibits the employee from “directly or indirectly” competing

will 99 percent of the time be declared unenforceable. Similarly, if

the non-compete prohibits all employment by a competitor (including

employment in a position unrelated to the position the employee held

with his former competitor), it is facially unenforceable.

12 | March 2018 • Mecklenburg Medicine
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