Physician noncompete clause.

2018
STATE OF WYOMING
18LSO-0504
ENGROSSED
2.1

HOUSE BILL

NO.
HB0163

Physician noncompete clause.

Sponsored by:
Representative(s) Nicholas, Connolly, Harshman and Miller and Senator(s) Baldwin, Bebout, Rothfuss, Scott and Wasserburger

A BILL

for

AN ACT relating to professions and occupations; prohibiting a noncompete provision for a physician's employment, partnership or other business agreement; prescribing enforcement of other contract provisions; providing applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 33
‑
26
‑
104 is created to read:

33
‑
26
‑
104
.

Noncompete clauses
.

(a)

Any covenant not to compete
in an employment, partnership or other business agreement
that restricts the right of a physician required to be licensed under this
chapter to practice medicine, upon termination of the agreement, is void, except:

(i)

All other provisions of an employment, partnership or other business agreement
that are otherwise
enforceable at law

shall remain in full force and effect
, including
:

(A)

P
rovisions that require the payment of damages in an amount that is reasonably related to the injury suffered
due to
termination of the agreemen
t;

(
B
)

Provisions that require the payment of
reasonable
damages upon termination of the agreement
.

(i
i)

All covenants
not to compete shall
provide that the physician will not be prohibited from providing continuing care and treatment to a
ny
patient during the course of an acute illness even after the contract or employment has been terminated.

(b)

Subsection (a)
of this section shall not apply to a physician'
s business ownership interest in a licensed hospital or licensed ambulatory surgical center.

Section 2
.

This act shall not apply to any employment, partnership or other business agreement originally entered into prior to the effective date of this act.

Section
3
.

This act is effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

1
HB0163