Get Your New Physician Non-Compete Agreements in Place

By: Jude C. Bursavich

Act 273 of the 2024 regular session of the Louisiana Legislature became effective January 1, 2025. That Act drastically changes the law on non-compete agreements for most Louisiana physicians (but not all).

The new law distinguishes between “primary care physicians” and non-primary care physicians. “Primary care physician” is defined as those physicians who predominantly “practice general family medicine, general internal medicine, general pediatrics, general obstetrics or general gynecology.” For primary care physicians, a non-compete agreement cannot exceed three years from the effective date of the initial agreement. Thus, if the physician works continuously for the same employer for three years, the physician’s non-compete agreement evaporates at that point. Any subsequent agreement between the employer and the primary care physician executed after the initial three-year term cannot include a non-compete provision.

Additionally, a non-compete agreement with a primary care physician cannot prohibit the physician from competing in more than three parishes, including the physician’s principal practice parish and no more than two contiguous parishes in which the employer carries on a like business. Those parishes must be specified in the agreement. Finally, the prohibition cannot exceed more than two years from the date of termination of employment.

Within the three-year period from the effective date of the initial agreement with the primary care physician, a non-compete provision can be enforced if violated during that three-year period. It can only be enforced, however, if the physician terminates the agreement within that maximum three parish area for two years from the date of termination of employment.

For any physician other than a “primary care physician” as defined in the Act, a non-compete agreement cannot exceed five years from the effective date of the initial agreement. Any subsequent agreement between the physician and the same employer after the initial five-year term cannot include a non-compete agreement. The three-parish limit on the area of prohibition is equally applicable here. A non-compete agreement with a five-year limitation can be enforced if violated during that five-year period.

Neither the three- nor five-year limitations apply to physicians employed by or under contract with a rural hospital as defined in the Rural Hospital Preservation Act, or any physician employed by or under contract with a federally qualified health care center as defined in La. R.S. 40:1183.3 and which operates in a rural parish. For these physicians, the general law on non-compete agreements under La. R.S. 23:921 applies.

Because current physician non-compete agreements will not be limited to a three- or five-year term from agreement inception, as required by the new law, current agreements may be held invalid by Louisiana courts. New physician non-compete agreements in compliance with the new law are therefore critical to employers.

An ICE-Y Time of Year: I-9 Audits Likely to Increase

By Philip Giorlando and Fred Preis

President’s Trump incoming administration has stated that it will enforce immigration laws to the letter to identify and deport foreign nationals in the United States illegally. For employers, this means there is a strong likelihood of an increase in I-9 audits by the federal government.

What is an I-9 Audit?

An I-9 audit begins with Immigration and Customs Enforcement (“ICE”) issuing a Notice of Inspection (NOI) to the employer. This notice informs the employer that their I-9 forms will be reviewed and provides a timeframe, usually three business days, to produce the requested documents. Employers must gather and submit the I-9 forms and any supporting documentation, such as copies of employees' identification and work authorization documents. These documents must be organized and provided within the specified timeframe. ICE agents review the submitted I-9 forms for completeness and accuracy. They check for common errors, such as missing signatures, incorrect dates, or invalid documents. The agents also verify that the forms were completed within the required timelines.

If ICE identifies any technical or procedural errors, they may issue a Notice of Technical or Procedural Failures. Employers are typically given ten business days to correct these errors without facing penalties. If ICE finds that any documents appear to be fraudulent or that an employee is not authorized to work in the U.S., they will issue a Notice of Suspect Documents. Employers must take appropriate action, which may include terminating the employment of individuals who cannot provide valid work authorization. After reviewing all documents and responses, ICE issues a final determination. This may include a Notice of Intent to Fine (NIF) if significant violations are found. Penalties can range from monetary fines to criminal charges, depending on the severity of the non-compliance.

How to Prepare for One

1. Conduct Internal Audits Regularly

The employer should have their I-9 Forms audited internally on a regular basis to identify and correct errors before an official audit occurs. Review I-9 forms for completeness and accuracy, ensuring that all sections are properly filled out and that supporting documents are valid.

2. Train Supervisors and Human Resources Personnel

As with other employment law issues, the employer’s human resources staff and supervisors should be regularly trained in I-9 compliance. This includes understanding how to complete the form correctly, recognizing acceptable documents, and knowing the timelines for form completion.

3. Maintain Organized Records

Keep I-9 forms and supporting documents organized and easily accessible. Forms should be stored separately from personnel files to facilitate quick retrieval during an audit.

4. Use E-Verify

Employers can enroll in E-Verify, a web-based system that allows employers to confirm the eligibility of their employees to work in the U.S. This can provide an additional layer of compliance and help identify potential issues early.

5. Respond Promptly to Audit Notices

If an employer receives a Notice of Inspection from ICE, counsel should be contacted immediately so that documents can be reviewed and responses prepared to ensure compliance with the strict timelines and requirements.