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

Is 2026 the Year of 5G for Latin America?

The Dawning of a New Connectivity Era The year 2026 is shaping up to be a watershed moment for fifth-generation mobile technology across Latin America. After years of planning, auctions, and initial trials, the region is on the cusp of a significant acceleration in 5G deployment, driven by a confluence of regulatory milestones, substantial investment commitments, and a strategic push

EU Set to Ban High-Risk Vendors From Critical Networks

The digital arteries that power European life, from instant mobile communications to the stability of the energy grid, are undergoing a security overhaul of unprecedented scale. After years of gentle persuasion and cautionary advice, the European Union is now poised to enact a sweeping mandate that will legally compel member states to remove high-risk technology suppliers from their most critical

AI Avatars Are Reshaping the Global Hiring Process

The initial handshake of a job interview is no longer a given; for a growing number of candidates, the first face they see is a digital one, carefully designed to ask questions, gauge responses, and represent a company on a global, 24/7 scale. This shift from human-to-human conversation to a human-to-AI interaction marks a pivotal moment in talent acquisition. For

Recruitment CRM vs. Applicant Tracking System: A Comparative Analysis

The frantic search for top talent has transformed recruitment from a simple act of posting jobs into a complex, strategic function demanding sophisticated tools. In this high-stakes environment, two categories of software have become indispensable: the Recruitment CRM and the Applicant Tracking System. Though often used interchangeably, these platforms serve fundamentally different purposes, and understanding their distinct roles is crucial

Could Your Star Recruit Lead to a Costly Lawsuit?

The relentless pursuit of top-tier talent often leads companies down a path of aggressive courtship, but a recent court ruling serves as a stark reminder that this path is fraught with hidden and expensive legal risks. In the high-stakes world of executive recruitment, the line between persuading a candidate and illegally inducing them is dangerously thin, and crossing it can