JUL-AUG 2018

MedEsthetics—business education for medical practitioners—provides the latest noninvasive cosmetic procedures, treatment trends, product and equipment reviews, legal issues and medical aesthetics industry news.

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It is not uncommon for an employee to leave a company and join a competitor's business or launch their own shop in the same community. As a practice owner in the highly competitive arena of aesthetic medicine, it is understand- able that you would want to protect your business against loss of patients, particularly when that loss may come at the hands of an employee who has benefi ted from hours of training and years of building professional and patient contacts in your facility. To minimize the risk, you can require staff members to sign restrictive covenant agreements. These include non- compete, non-solicitation and/or non-disclosure agreements. But are such agreements enforceable? That depends: Enforceability varies from state to state. Understanding the laws of your jurisdiction and the details that must be included in such agreements is the fi rst step in drafting an enforceable restrictive covenant. COVENANT NOT TO COMPETE A covenant not to compete—also called a non-compete agreement—prohibits an employee from working for the employer's competitors and/or soliciting business from the employer's customers after the employment has terminat- ed. (Generally, termination of the employment relationship can be done with or without cause upon the initiative of either the employer or employee.) These agreements are used to protect the employer's legitimate business interests, which typically include: trade secrets and other valuable confi dential information; relationships with specifi c prospective or existing custom- ers, patients, vendors or clients; customer, patient or client goodwill associated with an ongoing business, commercial or professional practice, specifi c geographical location or specifi c marketing or trade area; and extraordinary or specialized training and/or any other economic advantages 24 JULY/AUGUST 2018 | Med Esthetics © GETTY IMAGES LEGAL ISSUES | By Allyson Avila Restrictive covenants can help protect your business, but they must be reasonable and are not always enforceable. RESTRICTIVE COVENANTS

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