Sample “No Other Agreements Clause”
You represent that you have not entered into any agreement with any other employer or party which would restrict your right to enter into this agreement or perform professional services as an employee of PRACTICE, and you understand that the PRACTICE has relied on this representation in offering you this agreement.
No Other Agreements Clauses – What Does it Mean?
Basically, these “No Other Agreement” clauses prohibit you from working for a practice when that work would violate another agreement - like a non-compete.
So, say you are a pediatrician and have a non-compete with Practice. Practice A’s non-compete says that you cannot practice pediatrics within a 5 mile radius of the primary location of Practice A. You quit Practice A and move on to Practice B (congrats on the new job!). Practice B hands you an employment agreement with a No Other Agreements clause. If you were to sign Practice B’s employment agreement, not only would you be violating you non-compete with Practice A, you would also be violating your new agreement with Practice B, by certifying (incorrectly) that you are not prohibited from working for Practice B by any other agreement.
No Other Agreements Clauses – what should I do?
Before you move on to practice B, you need to make sure you understand your agreement(s) with practice A. More often than not, you can do this yourself. Just look out for things in your agreement(s) with Practice A that impact your future. These are usually called “Restrictive Covenants,” which is a umbrella term that includes, among other things, non-competes, non-solicits and non-disclosures. You do not have to be a genius to figure this stuff out on your own, but if you want to make sure, or just don’t have the time to put into it, you can also call an attorney who can walk you through every step of the process.
If your no prior agreements inhibit your ability to work for your potential employer, then this clause is fine. If there is a roadblock, it is definitely time to call an attorney and work out a plan.