South Carolina Bill Regulating Non-Competes in Physician Employment Contracts

Medical-License-Pro-101-What-is-Medical-Licensing-300x200Our healthcare law firm works with many providers and healthcare practices to assist them in complying with federal, state, and local laws. Several of our clients in South Carolina have concerns about their non-compete in their employment agreement. South Carolina has proposed a bill to regulate non-competes in employment agreements for physicians. The bill does not apply to employment agreements of mid-level providers, including physician assistants and nurse practitioners, or other licensed healthcare personnel, such as registered nurses.

This blog post discusses the bill in the South Carolina General Assembly that proposes to eliminate non-competes and highlights other common provisions of concern found in physician employment agreements. As of March 30, 2026, the bill has passed the South Carolina House and is currently in the South Carolina Senate. If you are a South Carolina physician who has concerns about their employment agreement, is planning to negotiate their employment agreement, is about to enter a new employment agreement for a new job, or would like to discuss this blog post, you may contact our healthcare law firm at (404) 685-1662 (Atlanta) or (706) 722-7886 (Augusta), or by email, info@littlehealthlaw.com. You may also learn more about our law firm by visiting www.littlehealthlaw.com.

House Bill 4767 (H. 4767) first declares that non-competes in physician contracts are against South Carolina public policy, and certain provisions in physician contracts are void and unenforceable. These provisions include non-competes, restrictions on physicians continuing to treat patients, at the patient’s request, after their termination of employment, restrictions on physicians to establish a physician-patient relationship with a patient, at the patient’s request after their termination of employment, and restrictions on physicians’ obligations to notify patients of their departure from employment to ensure continuity of care. The notification must be given within 30 days of the physician’s departure or the physician giving the new practice information to his employer.

H. 4767 also allows employers to require physicians to repay relocation expenses, signing bonuses, or retention bonuses, as outlined in their employment agreements, if physicians worked for an employer for less than three years. The bill would also allow employers to require physicians to repay retention bonuses, provided that the repayment period for the retention bonus does not exceed two years from the date that the physician signed the employment agreement. The bill also does not restrict employers’ ability to protect trade secrets or other confidential information necessary for their practice, including compensation, management and marketing plans, software, and business strategies. H. 4767 applies only to contracts or contract renewals that are entered into on or after the bill is signed by South Carolina’s governor.

If you are a South Carolina physician who has concerns about their employment agreement, is planning to negotiate their employment agreement, is about to enter a new employment agreement for a new job, or would like to discuss this blog post, you may contact our healthcare law firm at (404) 685-1662 (Atlanta) or (706) 722-7886 (Augusta), or by email, info@littlehealthlaw.com. You may also learn more about our law firm by visiting www.littlehealthlaw.com.

 

 

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