This bill aims to restrict the use of employment covenants that limit the ability of licensed physicians to practice medicine after the termination of their professional relationships. Specifically, it declares that any contract or agreement that imposes such restrictions is void and unenforceable. However, the bill outlines several exceptions where restrictive covenants may still be valid, including prohibitions against leaving a hospital system or group practice to join another similar entity within a specified geographic area, as well as restrictions related to federally qualified health centers and unique incentives provided by the hospital system or group practice.

The bill also clarifies that the term "unique incentive" can encompass various forms of inducements, such as starting new programs or services, offering substantial signing bonuses, or establishing new practice groups. The legislation is set to take effect immediately and will apply to contracts and agreements entered into by physicians after the effective date.