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Check with an attorney before you sign an employment or independent contractor agreement that includes a non-compete clause.
I am not an attorney, and I am not providing legal advice. I’m sharing my experience and the experiences of others who worked with coding companies or contractors that include non-compete clauses in employment and independent contractor agreements.
I was offered a job with a company, and they included a non-compete clause in the paperwork. The non-compete meant that I would not work for another company as an employee or independent contractor within a 50-mile radius for two years after my employment ended. Additionally, I would not accept a position, or perform contract work for two years, with any facility that contracted with the company, even if I did not work on those contracts for the company.
Human Resources told me that I would not be hired if I did not sign the agreement. This would mean that I would have to travel beyond a comfortable commute for two years in order to make a living. Even if the company’s contract ended with the facility, I could not accept an employment offer so that I could continue to make a living.
How can a company restrict a coder’s ability to make a living? Would the company sue a coder? Well this particular company, yes.
This company had a reputation of suing coders who left either voluntarily or involuntarily and accepted employment with other companies. The company always lost in court, but it placed financial burdens on the coders who had to hire attorneys to defend them in court.
A coder was terminated from the company when the contract ended. When she applied for a job with another company, the recruiter told her that because she had a non-compete agreement with the first company, they could not hire her.
Another coder worked on a contract for the same company. When the contract ended, the company did not have additional work for her. She signed on with the company that took over the contract, but she was threatened with a lawsuit by the first company if she did not resign. She resigned the same day because she could not afford an attorney to fight for her.
Seek advice from an attorney before you sign a non-compete clause. Utilize your network. Have discussions with people who have had experiences with the company you’re considering. Then you can make an informed decision that is best for you and your medical coding career.