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What House Bill
3532 says
(November
2004 Issue)
Rep. Ruth B. Balser, Ph.D., (D-Newton), in concert with the Massachusetts
Psychological Association, filed legislation to remove restrictive
covenant clauses from contracts for Bay State psychologists. Sen.
Cynthia Stone Creem (D-Newton) provided additional legislative support
for the bill. Approved on July 26, 2004, Gov. Mitt Romney signed
House Bill 3532 on August 2, "An Act Clarifying Restrictive Covenants,"
into law. Now known as Chapter 209 of the Acts of 2004, the law
addresses restrictive covenants as they apply to psychologists.
Inserted as Section 129B of Chapter 112 of the General Laws, the
language reads: "A contract or agreement which creates or establishes
the terms of a partnership, employment, or any other form of professional
relationship with a psychologist licensed under this chapter, which
includes a restriction of the right of the psychologist to practice
in any geographic area for any period of time after termination
of the partnership, employment or professional relationship shall
be void and unenforceable with respect to the restriction; but,
nothing herein shall render void or unenforceable the remainder
of the contract or agreement."
Similar to a non-compete business agreement, the former wording
barred a provider from treating clients in a particular geographic
area for a specified length of time after leaving a managed care
organization (MCO) or healthcare facility. Additionally, a provider
might be prevented from treating clients previously associated with
the MCO or hospital. This law became effective on Oct. 24, 2004.
Similar protection already exists for physicians and nurses.
Phyllis Hanlon
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