Bill

HR 592

House Study Committee on Noncompete Clauses in Physician Contracts; create

2025-2026 Regular Session Introduced by Mark Newton

Creates a temporary House Study Committee to examine physician noncompete clauses, assess effects on patient care and access, and report findings before sunset (Dec 1, 2025).

House Committee Favorably Reported By Substitute

#contracts #generalassembly #professionsandbusinesses

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Bill Summary · HR 592

Summary — HR 592: House Study Committee on Noncompete Clauses in Physician Contracts

Status: House Withdrawn, Recommitted
Introduced: January 21, 2025
Classification: House resolution (study committee)
Abolishment date: December 1, 2025

Purpose and intent

HR 592 creates a temporary House Study Committee to examine the use and effects of noncompete (restrictive covenant) clauses in physician employment contracts. The resolution cites concerns that noncompetes can limit where physicians may practice after leaving an employer, potentially restricting patient access and continuity of care. The committee is charged with studying those issues and recommending whether changes to state law or other legislative action are warranted.

Key provisions

Creates the House Study Committee on Noncompete Clauses in Physician Contracts.
Membership: five members of the House of Representatives appointed by the Speaker; the Speaker designates the chair.
Scope of study: examine “the conditions, needs, issues, and problems” relating to physician noncompete clauses — including their effects on patient care and the state health system — and recommend any necessary actions or legislation.
Meetings: convened by the chair; may meet at times/places the committee deems necessary.
Compensation/funding:
- Legislative members receive allowances under OCGA §28‑1‑8.
- Allowances limited to five days unless additional days are authorized.
- Operational funds to come from funds appropriated to the House.
Reporting:
- If the committee adopts findings or legislative recommendations, the chair must file a report before abolishment.
- Reports require approval by majority vote of a quorum; if no report is adopted, the chair may file meeting minutes instead.
Sunset: committee automatically abolished on December 1, 2025.

Who is affected

Physicians employed by hospitals, health systems, staffing companies, and other medical employers.
Patients and communities potentially affected by physician mobility and access to care.
Employers, hospitals, and legal practitioners involved in employment contracts and restrictive covenants.
State policymakers deciding whether to amend current law or adopt new limits on noncompetes.

Context and potential outcomes

The resolution references American Medical Association policy (including a 2023 position supporting bans on noncompetes for certain employed clinicians) and notes that Georgia courts currently evaluate restrictive covenants by scope, duration, and territory. The committee’s work could lead to recommendations ranging from legislative limits or bans for specific employers to model contract provisions, enforcement standards, or transparency measures — but any specific proposals would depend on the committee’s findings and are not mandated by this resolution.

Legislative actions (selected)

2025-01-21: Introduced; referred to House Committee on Education and Workforce
2025-03-27: House Committee favorably reported
2025-04-04: House Withdrawn, Recommitted
2025-04-17: Adopted by the House; placed on calendar and laid before the House
2025-04-21: Reported enrolled