SB 301: Regards noncompete clauses in health care employment contracts
The bill aims to protect health care professional employees from non-compete provisions in employment contracts with nonprofit hospitals. A nonprofit hospital cannot require a health care professional employee to agree not to work for a competitor within a certain geographic area or industry for a specified period of time. However, a hospital can limit the area where an employee cannot work for six months after leaving the hospital, as long as the area is within a 15-mile radius of the employee's previous workplace. Any agreement that waives a health care professional's rights under this provision is invalid. If a hospital violates these restrictions, the employee can bring a civil lawsuit for damages and attorney's fees and costs.
| Oct. 29, 2025 | Referred to committee: General Government |
| Oct. 21, 2025 | Introduced |
As Introduced
136th General Assembly
Regular Session
Senator Johnson
To enact section 3727.62 of the Revised Code regarding the use of noncompete provisions in certain health care professional employment contracts with nonprofit hospitals.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 3727.62 of the Revised Code be enacted to read as follows:
Sec. 3727.62.
(A) As used in this section:
(B) (1) Except as provided in division (B) (2) of this section, no nonprofit hospital shall require a health care professional employee or prospective health care professional employee, as a condition of employment with the hospital, to agree that, at the conclusion of the employment with the hospital, the employee will refrain from obtaining employment in a specified geographic area, for a specified period of time, with a particular employer, or in a particular industry or practice specialty.
(2) A nonprofit hospital may require a health care professional employee or prospective health care professional employee, as a condition of employment with the hospital, to agree that, at the conclusion of the employment with the hospital, the employee will refrain, for a period not to exceed six months, from obtaining employment within a radius of fifteen miles of the physical location where the employee was employed with the hospital. To implement this requirement, the hospital shall identify in the employee's employment contract with the hospital one specific physical address from which the fifteen-mile radius will be measured.
(C) Division (B) of this section does not prohibit a nonprofit hospital from requiring a health care professional employee or prospective health care professional employee, as a condition of employment with the hospital, to agree that, during the term of the employee's employment contract with the hospital, the employee will refrain from obtaining employment in a specified geographic area, for a specified period of time, with a particular employer, or in a particular industry or practice specialty.
(D) An agreement by a health care professional employee to waive the employee's rights under division (B) of this section is void and unenforceable.
(E) If a health care professional employee or prospective health care professional employee believes that a nonprofit hospital has violated division (B) of this section, the employee or prospective employee may bring a civil action against the hospital in a court of competent jurisdiction. A nonprofit hospital that violates division (B) of this section is liable to a health care professional employee or prospective health care professional employee for damages and attorney's fees and costs.