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Physician Contract Glossary · Restrictive Covenants

Consequences of Violating Restrictions

These are the penalties the contract imposes if you breach a non-compete, non-solicitation, or confidentiality clause.

This provision spells out what happens if you violate a restrictive covenant: injunctive relief to stop you, monetary damages, liquidated damages set in advance, forfeiture of deferred compensation, and recovery of the employer's legal fees. The consequences are often more punishing than physicians expect, and they are what give the restrictions their teeth.

WHAT TO WATCH FOR

Read the penalties before you assume a restriction is unenforceable. Even a shaky non-compete can be expensive to fight, and liquidated damages or a fee-shifting clause can make a violation cost far more than the move was worth.

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