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As Introduced
136th
General Assembly
Regular
Session
S. B. No. 301
2025-2026
Senator Johnson
To
enact section
3727.62
of the Revised Code
regarding
the use of noncompete provisions in certain health care professional
employment contracts with nonprofit hospitals.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section
1.
That
section
3727.62
of the Revised Code be enacted to read as follows:
Sec.
3727.62.
(A)
As used in this section:
(1)
"Advanced practice registered nurse" has the same meaning
as in section 4723.01 of the Revised Code.
(2)
"Health care professional employee" means a physician,
physician assistant, or advanced practice registered nurse employed
by a nonprofit hospital. "Health care professional employee"
does not include a management employee employed by a nonprofit
hospital.
(3)
"Management employee" means an employee who formulates
policy on behalf of a nonprofit hospital, who directs the
implementation of policy, or who may be reasonably required on behalf
of the hospital to have a major role in personnel administration.
(4)
"Nonprofit hospital" means a hospital, as defined in
section 3722.01 of the Revised Code, no part of the net earnings of
which inures, or may lawfully inure, to the benefit of any private
shareholder or individual.
(5)
"Physician" means an individual authorized under Chapter
4731. of the Revised Code to practice medicine and surgery,
osteopathic medicine and surgery, or podiatric medicine and surgery.
(6)
"Physician assistant" means an individual who is licensed
under Chapter 4730. of the Revised Code.
(B)(1)
Except as provided in division (B)(2) of this section, no nonprofit
hospital shall require a health care professional employee or
prospective health care professional employee, as a condition of
employment with the hospital, to agree that, at the conclusion of the
employment with the hospital, the employee will refrain from
obtaining employment in a specified geographic area, for a specified
period of time, with a particular employer, or in a particular
industry or practice specialty.
(2)
A nonprofit hospital may require a health care professional employee
or prospective health care professional employee, as a condition of
employment with the hospital, to agree that, at the conclusion of the
employment with the hospital, the employee will refrain, for a period
not to exceed six months, from obtaining employment within a radius
of fifteen miles of the physical location where the employee was
employed with the hospital. To implement this requirement, the
hospital shall identify in the employee's employment contract with
the hospital one specific physical address from which the
fifteen-mile radius will be measured.
(C)
Division (B) of this section does not prohibit a nonprofit hospital
from requiring a health care professional employee or prospective
health care professional employee, as a condition of employment with
the hospital, to agree that, during the term of the employee's
employment contract with the hospital, the employee will refrain from
obtaining employment in a specified geographic area, for a specified
period of time, with a particular employer, or in a particular
industry or practice specialty.
(D)
An agreement by a health care professional employee to waive the
employee's rights under division (B) of this section is void and
unenforceable.
(E)
If a health care professional employee or prospective health care
professional employee believes that a nonprofit hospital has violated
division (B) of this section, the employee or prospective employee
may bring a civil action against the hospital in a court of competent
jurisdiction. A nonprofit hospital that violates division (B) of this
section is liable to a health care professional employee or
prospective health care professional employee for damages and
attorney's fees and costs.