nephronParticipantStatus: PhysicianPosts: 273Joined: 05/09/2019
My partnership contract agreement has a termination clause which states that I have to pay the practice $60,000 if I fail to give 12 months notice or if they fire me with cause. Does anybody else have a similar clause in their contract? Seems extreme to me.July 5, 2019 at 5:24 pm MST #228067wonka31ParticipantStatus: PhysicianPosts: 714Joined: 03/24/2018
That sounds very unusual. 12 months notice is insane, I hope you didn’t/don’t sign that.July 5, 2019 at 5:46 pm MST #228072ZZZParticipantStatus: SpousePosts: 729Joined: 06/18/2018
Better be a sweet partnership to put crazy terms like that in there.July 5, 2019 at 5:50 pm MST #228073July 5, 2019 at 5:52 pm MST #228074nephronParticipantStatus: PhysicianPosts: 273Joined: 05/09/2019
My state does not allow non-competes. Haven’t signed it yet, trying to get it removed. My employment contract lawyer said that he had seen similar clauses in other contracts, but it still seems a bit crazy to me too, like being handcuffed to the job.EyedentistParticipantStatus: PhysicianPosts: 15Joined: 01/09/2016
I am also in a no non-compete state. I good friend was just given a partner contract that has 18 month termination notice. INSANE.July 5, 2019 at 6:20 pm MST #228078
My state does not allow non-competes. Haven’t signed it yet, trying to get it removed. My employment contract lawyer said that he had seen similar clauses in other contracts, but it still seems a bit crazy to me too, like being handcuffed to the job.Click to expand…
That’s what i thought.
not unusual.July 5, 2019 at 6:43 pm MST #228083CordMcNallyParticipantStatus: PhysicianPosts: 3047Joined: 01/03/2017
“But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
― Benjamin Graham, The Intelligent InvestorpulmdocParticipantStatus: PhysicianPosts: 434Joined: 09/19/2016
Wait, if you get fired for cause you ALSO have to pay the group $60k??? That seems extremely punitive.
The 12 month notice is a long time, but it depends on how long it would reasonably take the practice to fill your position. If you are in a group in a small town that takes a year to recruit someone, having a long notice makes more sense. If it’s a big city with multiple residency programs churning out new grads every year, a year is punitive.July 6, 2019 at 2:24 pm MST #228233jhwkr542ParticipantStatus: PhysicianPosts: 1335Joined: 02/15/2016nachos31ModeratorStatus: PhysicianPosts: 432Joined: 01/12/2016
This sounds like a non compete clause in sheep’s clothingClick to expand…
Bingo. I’ve most commonly seen 3 months’ notice and occasionally 6 months’ notice but anything more is over the top. How about you work in that if you leave for cause then they have to pay you $60k?jfoxcpacfpModeratorStatus: Financial Advisor, Accountant, Small Business OwnerPosts: 8358Joined: 01/09/2016
I think we have one client with those terms, but that’s all. I attempt to review contracts for all planning clients – most are 60 – 90 days. But in a state allowing no non-competes, it can make sense. Imagine yourself in the employer’s shoes.
Of course, depends on your specialty. For some, I really don’t get the purpose of a non-compete other than punitive.wcinewbieParticipantStatus: PhysicianPosts: 92Joined: 09/30/2017
I think there is some confusion in this thread about the OP’s position. While I don’t know what specialty or practice situation the OP is in, they identified themselves as a partner. While non competes are unenforceable in some states, this typically refers to employee physicians, not business partners. A partnership is much more complicated to wind down than a typical employed physicians practice; a sudden departure of a well established physician can be devastating to the practice’s finances. Our practice requires an 18 month termination notice for partners with penalty against their buyout if they leave early.ZaphodParticipantStatus: Physician, Small Business OwnerPosts: 6335Joined: 01/12/2016
Absolutely, non competes do not usually apply to partners, this is true even in california.July 6, 2019 at 8:01 pm MST #228282