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Physician Contract Glossary · Regulatory & Compliance

Governing Law

The governing law clause sets which state's law controls the contract, which can decide whether your non-compete is even enforceable.

The governing law clause names which state's law interprets and enforces the contract. It is easy to skip past and quietly powerful, because non-compete enforceability, restrictive-covenant rules, and dispute procedures all vary dramatically by state. A contract for a job in one state can sometimes specify another state's law, which can change your rights significantly.

WHAT TO WATCH FOR

Check that the governing law matches the state where you will actually practice, and understand that state's stance on physician non-competes. A favorable-looking non-compete can become enforceable under a less protective state's law.

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