The bill enacts section 3727.62 of the Revised Code, which regulates the use of noncompete provisions in employment contracts for health care professionals employed by nonprofit hospitals. It defines key terms such as "health care professional employee," which includes physicians, physician assistants, and advanced practice registered nurses, while excluding management employees. The bill prohibits nonprofit hospitals from requiring health care professional employees to agree to noncompete clauses that restrict their employment opportunities after leaving the hospital, except under specific conditions.
Under the new law, a nonprofit hospital may only impose a noncompete agreement that restricts a health care professional employee from working within a 15-mile radius of the hospital for a maximum of six months after their employment ends, provided that the hospital specifies a physical address for the radius in the employment contract. Additionally, any agreement that waives the rights of health care professional employees under this section is deemed void and unenforceable. Employees who believe their rights have been violated can pursue civil action against the hospital, which may be liable for damages and attorney's fees.