Dear Ali:
Upon review of the contract I call you attention to the following:
a. Strike out the entire paragraph (11) regarding the Covenant Not to Compete. It is an undue limitations and may even be unlawful because it proscribes you from working as a physician within 10 miles of the hospital and potentially any other facility that you may work within the DMC system for one year.
b. The effective date on the contract in 10/1/2010. Obviously weâre now in November. It should be changed to reflect the actual signing date.
c. Paragraph 12.1 a establishes a termination notice period of 30 days. Your old contract provided 60 days.
d. At Paragraph 12.3, your employer is not obligated to compensate you for the remainder of the contract period in the event of an early termination for whatever reason. This is not a terribly problematic provision because you may leave for whatever reason as well if you give them a 30 day notice. That makes this an at will type of arrangement and renders this contract as something akin to an offer of employment and policy letter.
e. Paragraph 13.6 limits your ability to file a cause of action against the hospital to a one year period after employment terminates. The problem with this is that sometimes bad acts or violations are not discovered immediately. The paragraph would be more fair if it allowed a cause of action to be brought one year after the event is discovered. The paragraph as it exists now also restricts the hospitals ability to take action against you to one year after termination of employment. Of course that doesnât matter because theyâre already trying to limit your ability to compete for a one year period.
f. Paragraph 13.11 is states in a manner that will leave you exposes to substantial liability for violation of the con-compete and confidentiality clauses. Although I agree with the confidentiality provisions, they are unnecessary because HIPPA governs the disclosure of such matters. I have highlighted the words in the contract that I think you should strike.
g. Paragraph 13.17 makes this agreement assignable to a successor entity to DMC. What that means is the Vanguard will have the right to enforce this agreement once they take over the DMC, without doing anything more.
I am available if you have questions. Please email me your address. I can drop the contract off on my way to my motherâs.
Haytham Faraj, Esq.
PUCKETT & FARAJ, PC
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The Law Firm of Puckett & Faraj, PC
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The Law Firm of Puckett & Faraj, PC
P.O. Box 1016
Dearborn Heights, MI 48127
313-457-1390 Phone
202-280-1039 Fax
www.puckettfaraj.com
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