Legislation to Prohibit Non-Compete Agreements Delivered to Governor
Legislation (S.3100-A/A.1278-B) that would prohibit the use of non-compete agreements by all employers in New York State has been sent to the Governor for her consideration, for which she must act by December 23.
MSSNY, together with 5 specialty societies, have written to Governor Hochul urging that she sign into law the legislation with a requested “chapter amendment” to exempt from its applicability community-based physician practices not located in Health Professional Shortage areas. Also signing the letter were the New York State Academy of Family Physicians, New York State Osteopathic Medical Society, New York Chapter of the American College of Physicians, New York State Society of Anesthesiologists and the New York State Neurosurgical Society.
MSSNY has adopted a policy that calls for legislation to prohibit non-compete agreements imposed by hospitals, health systems and Management Service Organizations on their employed or affiliated physicians. This legislation goes much further than the proposed FTC rule because it would apply to non-profit employers, the primary form of business structure for hospitals and health systems in New York State.
Governor Hochul recently stated publicly that she would like to see an amendment to the legislation to create a $250,000 income cap to these protections. As was reported in an article this week, Future of noncompete agreements in NY in Gov. Hochul’s hands – Gothamist, this approach has been rejected by the Senate sponsor of the legislation, as well as unions backing the legislation. MSSNY’s letter to the Governor’s office on this legislation also indicated opposition to an arbitrary income limit to these protections, “as this would completely undermine one of the chief goals of this legislation to protect patient access to care” and that “protecting patient continuity of care is one of the chief aims of this legislation.”
