Ownership and transitions
Restrictive covenant
A contract promise that limits future competition, solicitation or hiring, and usually covers a stated time and area after a relationship ends.
A restrictive covenant is a promise in a contract that limits what a person may do later. In a dental job contract, the ADA gives this example: it may prevent a former employee dentist from practicing in the geographic area of their choice.
The label covers several clauses. A non-compete clause limits where someone may work. A non-solicitation clause limits contact with patients or staff. Practice sale contracts can include them too.
The ADA also notes that recruiters see radius and application of restrictive covenants as a common topic of negotiation. Rules vary by state. An attorney should review any covenant before signing. This entry is general information, not legal advice.