Revolutionizing Physician Employment: An Analysis of Nevada’s Assembly Bill 11 and Its Impact on Non-Compete Clauses

The Nevada Legislature recently passed a new piece of legislation that effectively bans all non-compete clauses in physician contracts. The Assembly Bill 11 was first introduced in February 2021 and was passed by both the Senate and Assembly by May. This groundbreaking bill is set to transform the way physicians work under contract, and significantly increase their employment rights.

The Nevada Legislature has passed new legislation that bans non-compete clauses in physician contracts

For a long time, physicians were subjected to the restrictive terms of strict non-compete clauses in their employment contracts, which worked to limit their professional mobility. However, with the introduction and subsequent passing of Assembly Bill 11, this is no longer the case. AB 11 is set to change the rules and prevent hospitals, psychiatric hospitals, and clinics from enforcing any non-compete covenants in physician contracts. As such, these covenants will be deemed void and unenforceable, regardless of whether they previously satisfied Nevada’s requirements to enforce non-competition covenants.

Codifying Physicians as Contractors Rather than Employees of Hospitals

A significant aspect of AB 11 is that it codifies the practice of physicians working as contractors instead of employees of a hospital or clinic. According to the legislation, hospitals or psychiatric hospitals cannot employ a physician as an employee “for the purpose of engaging in the practice of medicine, homeopathic medicine, or osteopathic medicine.” What this means is that physicians will now be seen as independent contractors, which means they will have more control over their work schedules and more freedom regarding where they can work.

Section 1 of AB 11 prohibits employing physicians as employees for medical practices

Section 1 of AB 11 prohibits hospitals or psychiatric hospitals from employing physicians as employees for the purpose of practicing medicine, homeopathic medicine, or osteopathic medicine. Instead, hospitals can engage physicians only through contracts that allow them to provide healthcare services to patients, but not directly as employees.

Sharp Curtailment of Physician Speech

Under AB 11, hospitals and psychiatric hospitals cannot restrict physicians from discussing wage/salary, harassment, violence, or any information relating to their working conditions. These restrictions were included in many physician employment contracts, effectively preventing physicians from speaking out about workplace issues, including harassment and wage discrimination. The passing of AB 11 is a significant step forward in acknowledging the importance of physician autonomy and freedom of speech.

Expansion of protections for physician speech

Section 7.3 of AB 11 expands the protections for physician speech, prohibiting hospitals or psychiatric hospitals from including provisions that prevent physicians from discussing wage or salary, harassment, violence, or any information relating to working conditions. This expansion of protections for physician speech is a welcome development, as it affirms the right of physicians to speak out about the issues they face in the healthcare system.

Administrative enforcement by the Labor Commissioner

Sections 7.8 and 7.3 of AB 11 will be subject to administrative enforcement by the Labor Commissioner. This means that in case of any violations, physicians can appeal to the Labor Commissioner for the enforcement of their rights. This is a significant step forward in protecting physician rights and ensuring that hospitals and psychiatric hospitals comply with the provisions of AB 11.

The application of AB 11 to renewed contracts

Sections 7.8 and 7.3 apply to any existing physician contracts that are renewed after AB 11 has been enacted. This means that there is no full-scale retrospective effect, but physicians or other healthcare workers who renew their contracts will be covered by the provisions of AB 11.

Contrasting Legislative Actions in Other States

The passing of AB 11 is a significant milestone in protecting the rights of physicians and increasing their autonomy in their profession. In contrast, other states, such as Iowa, have taken legislative action that is significantly more restrictive to physician autonomy. Iowa has recently passed laws that are seen as restricting physicians’ ability to speak out against the healthcare system. These contrasting legislative actions illustrate the differing attitudes toward physician autonomy across the country.

The passing of AB 11 is a significant development in protecting the rights and autonomy of physicians. By codifying physicians as contractors, prohibiting hospitals from employing physicians as employees for medical practices, and expanding the protections for physician speech, Nevada has taken a bold step forward in transforming the landscape of physician employment contracts. The provisions of AB 11 signal a positive development in the healthcare industry, and further changes are likely to follow as physicians become more empowered in their profession.

Explore more

Encrypted Cloud Storage – Review

The sheer volume of personal data entrusted to third-party cloud services has created a critical inflection point where privacy is no longer a feature but a fundamental necessity for digital security. Encrypted cloud storage represents a significant advancement in this sector, offering users a way to reclaim control over their information. This review will explore the evolution of the technology,

AI and Talent Shifts Will Redefine Work in 2026

The long-predicted future of work is no longer a distant forecast but the immediate reality, where the confluence of intelligent automation and profound shifts in talent dynamics has created an operational landscape unlike any before. The echoes of post-pandemic adjustments have faded, replaced by accelerated structural changes that are now deeply embedded in the modern enterprise. What was once experimental—remote

Trend Analysis: AI-Enhanced Hiring

The rapid proliferation of artificial intelligence has created an unprecedented paradox within talent acquisition, where sophisticated tools designed to find the perfect candidate are simultaneously being used by applicants to become that perfect candidate on paper. The era of “Work 4.0” has arrived, bringing with it a tidal wave of AI-driven tools for both recruiters and job seekers. This has

Can Automation Fix Insurance’s Payment Woes?

The lifeblood of any insurance brokerage flows through its payments, yet for decades, this critical system has been choked by outdated, manual processes that create friction and delay. As the industry grapples with ever-increasing transaction volumes and intricate financial webs, the question is no longer if technology can help, but how quickly it can be adopted to prevent operational collapse.

Trend Analysis: Data Center Energy Crisis

Every tap, swipe, and search query we make contributes to an invisible but colossal energy footprint, powered by a global network of data centers rapidly approaching an infrastructural breaking point. These facilities are the silent, humming backbone of the modern global economy, but their escalating demand for electrical power is creating the conditions for an impending energy crisis. The surge