{"id":144055,"date":"2022-01-30T10:42:30","date_gmt":"2022-01-30T10:42:30","guid":{"rendered":"https:\/\/www.healthbenefitstimes.com\/glossary\/?p=144055"},"modified":"2022-01-30T10:42:30","modified_gmt":"2022-01-30T10:42:30","slug":"covenant-not-to-compete","status":"publish","type":"post","link":"https:\/\/www.healthbenefitstimes.com\/glossary\/covenant-not-to-compete\/","title":{"rendered":"Covenant not to compete"},"content":{"rendered":"<p>A clause of an employment contract which prohibits the employee from competing with the employer in their field of work in the event of termination of the employment relationship. Generally, a covenant not to compete will be enforced if it is (1) ancillary to a lawful contract, (2) supported by consideration (such as salary), and (3) is reason\u00ac able. For example, if the clause prohibited the employee from working in the same field as the employer forever, the clause would not be reasonable and would not be enforced. These clauses are becoming more important in the health care field as competition is increasing and physicians are working with more then one hospital. Hospitals are trying to get more control over the care within their service areas. Also called a &#8220;noncompete clause.&#8221;<\/p>\n<hr \/>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A clause of an employment contract which prohibits the employee from competing with the employer in their field of work in the event of termination of the employment relationship. Generally, a covenant not to compete will be enforced if it is (1) ancillary to a lawful contract, (2) supported by consideration (such as salary), and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-144055","post","type-post","status-publish","format-standard","hentry","category-c"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Covenant not to compete - Definition of Covenant not to compete<\/title>\n<meta name=\"description\" content=\"A clause of an employment contract which prohibits the employee from competing with the employer in their field of work in the event of termination of the employment relationship. Generally, a covenant not to compete will be enforced if it is (1) ancillary to a lawful contract, (2) supported by consideration (such as salary), and (3) is reason\u00ac able. For example, if the clause prohibited the employee from working in the same field as the employer forever, the clause would not be reasonable and would not be enforced. These clauses are becoming more important in the health care field as competition is increasing and physicians are working with more then one hospital. Hospitals are trying to get more control over the care within their service areas. Also called a &quot;noncompete clause.&quot;\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.healthbenefitstimes.com\/glossary\/covenant-not-to-compete\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Covenant not to compete - Definition of Covenant not to compete\" \/>\n<meta property=\"og:description\" content=\"A clause of an employment contract which prohibits the employee from competing with the employer in their field of work in the event of termination of the employment relationship. Generally, a covenant not to compete will be enforced if it is (1) ancillary to a lawful contract, (2) supported by consideration (such as salary), and (3) is reason\u00ac able. For example, if the clause prohibited the employee from working in the same field as the employer forever, the clause would not be reasonable and would not be enforced. These clauses are becoming more important in the health care field as competition is increasing and physicians are working with more then one hospital. Hospitals are trying to get more control over the care within their service areas. Also called a &quot;noncompete clause.&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.healthbenefitstimes.com\/glossary\/covenant-not-to-compete\/\" \/>\n<meta property=\"og:site_name\" content=\"Glossary\" \/>\n<meta property=\"article:published_time\" content=\"2022-01-30T10:42:30+00:00\" \/>\n<meta name=\"author\" content=\"Glossary\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Glossary\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.healthbenefitstimes.com\/glossary\/covenant-not-to-compete\/\",\"url\":\"https:\/\/www.healthbenefitstimes.com\/glossary\/covenant-not-to-compete\/\",\"name\":\"Covenant not to compete - Definition of Covenant not to compete\",\"isPartOf\":{\"@id\":\"https:\/\/www.healthbenefitstimes.com\/glossary\/#website\"},\"datePublished\":\"2022-01-30T10:42:30+00:00\",\"dateModified\":\"2022-01-30T10:42:30+00:00\",\"author\":{\"@id\":\"https:\/\/www.healthbenefitstimes.com\/glossary\/#\/schema\/person\/ccfef987a4882e6356ae6d77d33e74c5\"},\"description\":\"A clause of an employment contract which prohibits the employee from competing with the employer in their field of work in the event of termination of the employment relationship. 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