Drafting Enforceable Non-Competes for Local Healthcare Employers

Non-compete agreements are a common tool for protecting patient relationships, trade secrets, and goodwill in Tennessee’s healthcare industry. However, overly broad or poorly drafted restrictions can render these agreements unenforceable — and expose employers to costly litigation.

Understanding Tennessee’s Approach to Non-Competes

Tennessee courts scrutinize non-compete agreements carefully. To be enforceable, they must balance the employer’s interests against the employee’s right to work. The restrictions must be reasonable in scope, geography, and duration.

Common Mistakes in Drafting Non-Competes

Overly Broad Geographic Areas: Limiting practice across an entire state often won’t hold up in court.

Undefined Time Limits: Agreements without clear timeframes are rarely enforceable.

Failure to Protect Legitimate Business Interests: The restriction must protect confidential information or patient relationships — not simply limit competition.

Not Updating Agreements for Multi-Clinic Operations: Each location or affiliate may require tailored language.

Best Practices for Healthcare Employers

Work with a non-compete attorney in Tennessee to ensure compliance with state and federal labor laws.

Include clear definitions of confidential information.

Regularly review agreements for changes in job roles or business structures.

Pair non-competes with confidentiality and non-solicitation clauses for comprehensive protection.

Properly drafted non-compete agreements safeguard your practice without overstepping legal boundaries. The attorneys at Mitchell Law Firm LLC help Tennessee healthcare employers craft enforceable, fair, and compliant contracts.

📞 Schedule a consultation today to protect your healthcare business.