Nevada Seeks To Ban Non-Competes With Physicians

The Nevada legislature passed new legislation recently that essentially bans all non-compete clauses in physician contracts while severely limiting the instances in which a hospital or psychiatric hospital may employ a physician as an employee, rather than as a contractor. Assembly Bill 11 was introduced in February 2023 and had passed both the Senate and Assembly by May. However, Nevada Governor Joe Lombardo vetoed the bill in June, leaving AB 11's future uncertain. The bill passed both legislative houses just shy of a veto-proof majority. If ultimately passed over the veto, AB 11 would make the following changes:

Physician Non-competes: Dead on Arrival?

Section 7.8 makes the largest change to existing law, prohibiting virtually all noncompetition covenants in physician contracts. The relevant text proscribes noncompetition covenants which "restrict a provider of health care employed by or contracted with a hospital in [Nevada] from providing medical services at