Defining Noncompete Provisions In Tennessee

Law360, New York (July 6, 2007, 12:00 AM EDT) -- On June 7, 2007, the Tennessee General Assembly adopted a bill defining the noncompete restrictions an employer may place on its employed or contracted health care providers.

The General Assembly's passage of House Bill 240/Senate Bill 1688 follows a 2005 decision, Murfreesboro Medical Clinic PA v. Udom, in which the Tennessee Supreme Court declined to enforce a noncompete provision in an employment agreement between a physician and a private physician-owned medical clinic.

In that case, relying in part on T.C.A. Section 63-6-204, the Court stated that...
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