Indiana Senate sends physician noncompete bill to Gov. Holcomb’s desk

The Indiana Senate passed Senate Bill 7 41-7 Monday. It now goes to Gov. Eric Holcomb.

If signed, the bill will prohibit physicians and employers from entering into noncompete agreements. It also lays out circumstances in which current noncompete agreements will not be enforceable. It’s authored by Sen. Justin Busch, R-Fort Wayne, and Sen. Ed Charbonneau, R-Valparaiso.

Noncompete agreements prevent physicians from working in their field within a certain distance or time frame of their previous employer. According to Roll Call, “Doctors say the clauses limit career growth, but hospitals say they need them to retain workers.”

The bill originally passed the Senate by a vote of 45-5; however, the bill was amended in the House. 

Busch presented the changes to the Senate chamber, which include a complete prohibition of noncompete agreements for primary-care physicians and the stipulation of a mediation process for physicians and employers that would allow for a reasonable buyout of a noncompete agreement.