This bill aims to restrict the use of employment covenants for physicians and nurses by declaring that any contract or agreement that limits a licensed physician's right to practice medicine in a specific geographic area after the termination of their professional relationship is void and unenforceable. However, the bill outlines specific exceptions where such restrictive covenants may still be valid. These exceptions include prohibitions against a physician leaving a hospital system or group practice of 30 or more physicians to join another similar entity, restrictions on leaving a smaller practice, limitations on practicing near federally qualified health centers, and covenants tied to unique incentives provided by the hospital or group practice.

The bill also clarifies that the term "unique incentive" can encompass various forms of inducements, such as starting new programs, providing substantial signing bonuses, or establishing new practice groups. The act is set to take effect immediately and will apply to contracts and agreements entered into by physicians after the effective date. Overall, the legislation seeks to balance the protection of physicians' rights to practice with the interests of healthcare organizations in retaining their staff.