Starting a Medical Billing Business > Starting Your Own Medical Billing Business

Forms for employees

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Michele:
Well I'm not experienced in legal matters but I heard/read that non compete clauses are not enforceable in many states, including NY.  I'm not sure why.  Plus it would be a huge legal fee.  Most people don't understand the law either so when asked to sign if they have any reservations it may be a clue.  I do understand and encourage them to question it before signing to make sure they understand our position.  We don't prevent them from ever working in the billing field or anything crazy, just not to take our clients or directly compete with us in the same town for a period of time.  (That prevents them from coming in, learning our processes, then going out to do the exact same thing.  Franchising without the fee!)

billingandscanning:
I appreciate your help with this. Sometime I feel stupid asking some questions, but I know that you guys are here to help. I have heard before that there are no stupid questions. I am very grateful for this forum!

DMK:
Non-competes are difficult to enforce because you can not deny a person the right to make a living at what they know how to do.  HOWEVER, Michele's non compete should be enforceable because it only states they can't steal clients and gives them an area that they can't compete in.  There should also be a time limit (if there isn't one).

Michele also gives a great piece of advice when she says "if they won't sign it speaks volumes".  A good biller should be able to find work IN an office or hospital, they just shouldn't open their OWN service after learning how to do it from their employer.  But I'm kind of a hard-ass in thinking that people should do what's RIGHT not what's EASY.   :-\

Michele:
We did stipulate a time period as well.  There are lots of things they can still do in the medical billing field if they choose, and none of them would hurt my company.  I agree, the right way isn't always the easy way but I believe it should be the only way.  I'm sure I slip sometimes but I try to live by that.   ;)

PMRNC:
The reason most non=competes are not enforceable is because it comes down to he/said she/said, a non compete basically says an employee agree's NOT to actively compete against it's employer, this is divided two ways, to compete in general and to take clients from the employer directly. NEITHER can be enforceable unless you can show that the employee actively seeked to solicit the client. In terms of them taking on OTHER clients, most likely the non-compete is useless. The employer must show damages and cause of malice in order to enforce a non compete in court.  For example, if you have an employee who is approached by one of your clients to work for them on the side or instead of, your non compete would not be enforceable because the employee did not actively seek to solicit or do so with malice.  I agree with the others.. if the employee has a problem signing one, I'd definitely examine their motives.

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