Missouri SB 383: Creates provisions relating to covenants not to compete involving physicians

Bill Text

FIRST REGULAR SESSION
SENATE BILL NO. 383
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR FITZWATER.
0634S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 191, RSMo, by adding thereto one new section relating to covenants not to
compete for physicians.

Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 191, RSMo, is amended by adding thereto 1
one new section, to be known as section 191.260, to read as 2
follows:3
191.260. 1. As used in this section, the term 1
"covenant not to compete" means an agreement or part of a 2
contract of employment in which the employee agrees to 3
refrain from competition with an employer for a specific 4
period of time or within a particular geographic area, or 5
both. 6
2. A covenant not to compete between a physician and 7
an employer shall only be enforceable if: 8
(1) The physician is providing health care services in 9
a clinical setting; and 10
(2) The employer is not a health care entity owned or 11
operated by a nonprofit corporation that is exempt from 12
federal income tax under section 501(c)(3) of the Internal 13
Revenue Code of 1986, as amended. 14
3. A valid covenant not to compete between a physician 15
and an employer shall: 16
(1) Be for a period of no longer than three hundred 17
sixty-five days; and 18

SB 383 2
(2) Not extend further than fifty miles from the 19
physician's office address. 20
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