University Of Texas Rio Grande Valley Restrictive Covenants Discussion

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University Of Texas Rio Grande Valley


  2. What is your understanding on the restrictive covenants?
  3. What are some of the factors to consider prior to employment or self-employment?
    1. What is your understanding on the restrictive covenants?
  1. A restrictive clause is one of three commonly known clauses to be found within an employment agreement presented to Nurse Practitioners by medical practices seeking to hire (Buppert, 2018). It basically prohibits the NP from competing with their business after their employment with the company comes to an end (Buppert, 2018). This clause can restrict the NP from taking existing patients from their practice to their new place of employment on departure from their company (Buppert, 2018). It can also restrict the Np from practicing within a certain number of miles from the hiring company's office for a set amount of time following termination of their position (Buppert, 2018). There are several things to consider when negotiating the terms of a restrictive covenant, and if an NP is unsure of the wording it is best to consult with a lawyer prior to making a decision (Buppert, 2018).

    • 2. What are some of the factors to consider prior to employment or self-employment?

    Prior to seeking employment or deciding if you would like to go into business for your self it would be wise to look at all the pros and cons in your given situation, and decide what is best for you. Know the importance of negotiating your salary, benefits, and work environment if you choose to for some one else. On the other hand, if you decide to form a practice of your own seek guidance from a lawyer and understand your liability. A mixed methods study ,with a convergent parallel design, conducted by Lyden, Sekula, Higgins, and Zoucha (2018) concluded that self-employed Nurse Practitioners felt more empowered, and had an overall higher job satisfaction rating than that of the NPs that were working under an employer.


    Buppert, C. (2018). Nurse Practioner's Business Practice and Legal Guide(6th ed.). Burlington: Jones and Bartlett Publishing.

    Lyden, C., Sekula, L. K., Higgins, B., & Zoucha, R. (2018). Job satisfaction and empowerment of self- employed nurse practitioners: A mixed methods study. Journal of the American Association of Nurse Practitioners, 30(2), 78–91.


    What is your understanding on the restrictive covenants?

    A restrictive covenant is a promise not to compete. It is a clause that restricts an employee from practicing within a set number of and a set period of time after the employee leaves the business (Buppert, 2018). Many employers insist on this clause in a contract. An employer wants to avoid a situation where a departing NP who has built a patient following takes patients them to a new practice (Buppert, 2018). Covenants not to compete vary from state to state, but an unwary employee may still find themselves caught up in duties that restrict their employment movement to an extent they did not expect (Fort & April E. Sellers, 2021).

    Restrictive covenants are legal in many states and enforceable as long as they are reasonable. If a former employee challenges the validity of a restrictive covenant by taking the matter to court, a judge will determine whether it is reasonable. Then it is the judge’s duty to balance the needs of the employer against the harm to the employee. Then the judge will decide whether the geographic and time restrictions are appropriate to accomplish the employers needs but no more than that (Buppert, 2018).

    That’s judgment takes into account past court decisions and compare the facts of those cases. Such facts include the size of the city or town and practice in it along with the severity of the geographic and time restrictions in the given clause. Judges have found that these causes can be unreasonable when the restriction is greater than necessary to protect the legitimate business interests, and when the restraint is not greater than necessary to protect the business interests but the employers needs for protection is outweighed by the hardship to the employee (Buppert, 2018).

    NPs can negotiate terms of a restrictive covenant. One must consider the circumstances of the job offer, the potential hardship imposed on them by the covenant, the severity of the restriction, the availability of healthcare providers in the area, and the availability other practice opportunities. What agreeing to restrictive covenant’s you’re giving up something of value. This is your ability to take any other job that is offered. You must consider however that if you refuse to sign a restrictive covenant the employer may suspect that the MP is looking to start a competing practice (Buppert, 2018).

    What are some of the factors to consider prior to employment or self-employment?

    Nurse practitioners like many other career choices have the opportunity to either be employed by someone else or be self-employed there are advantages and disadvantages to both.

    Some of the advantages are that you have a built-in collaborative agreement in states that are restrictive such as Texas. There are no struggles from reimbursement from a third-party payer who may be slow to pay and pays directly but are comfortable reimbursing physician practice, billing under the physicians NPI number. When you’re employed by another party there are little to no responsibilities for day-to-day operations, payroll, and marketing (Buppert, 2018).

    As I have started at my own practice and it worked for an employer, I can attest to all of these statements made in our text. Marketing and finding money to improve practice is very difficult. Working for a company who seems to have the ability to ignore their end of a contract but force you to uphold your end is beyond unreasonable but this has gone on for the last 12 months in my place of work due to the pandemic. All of the disadvantages of being employed have come to be in this last year.

    To every advantage there also will be disadvantages. And employed in PE may be told how to practice even if they disagree with these decisions. You can be fired or laid off, while a salary may be comfortable you may or may not be able to share in the profits of the business any decisions regarding profit-sharing is up to the employer not the NP (Buppert, 2018).

    Buppert, C. (2018). Nurse practitioner's business practice and legal guide. Jones & Bartlett Learning.

    Fort, T., & April E. Sellers, J. (2021, February 12). I signed an agreement that prevents me from taking a new job with a competitor? How fiduciary duty and covenants not to compete restrict managers' mobility. Retrieved March 08, 2021, from

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Restrictive Covenants




Restrictive Covenants
Discussion Post

Restrictive Covenants
A restrictive covenant is an agreement that binds the employee from engaging in
particular actions. In the nursing profession, nurses may be required to sign clauses that restrict
them from engaging in competition with the employer organizations after the completion of their
employment. According to Buppert (2018), restrictive covenants are used by employers to
prohibit nursing practitioners from taking existing patients to their new places of employment of
practice. While restrictive covenants vary across states, they are legal and enforceable, provided
they are reasonable based on a balance of the interests of both employer and employee. I am

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