Employment Contract Intended to Limit Psychologist's Ability to Compete with a Group Practice After Employment Relationship Ends Is Not Enforceable

Comprehensive Psychology Sys. v. Prince, 867 A.2d 1187 (N.J. Super. Ct. App. Div. 2005)

When mental health professionals join a group practice, their employment contract may include a restrictive covenant that is intended to limit their ability to compete with the group practice for a period of time should the employment relationship end. In New Jersey, a corporation providing neuropsychological services to clients sued one of its former employees, a licensed psychologist, to enforce a restrictive covenant in their employment contract. The restrictive covenant stated that after the termination of employment the psychologist could not practice his profession within ten miles of the corporation's facility and not solicit any of the corporation's patients for two years...

Found in DMHL Volume 24 Issue 2