SENATE BILL No. 140
DIGEST OF INTRODUCED BILL
Citations Affected: IC 16-21-2-17.
Synopsis: Employment noncompetition clauses by hospitals. Prohibits
a hospital from entering into an employment contract with a health care
provider that includes a noncompetition agreement clause.
Effective: July 1, 2011.
January 5, 2011, read first time and referred to Committee on Health and Provider
First Regular Session 117th General Assembly (2011)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2010 Regular Session of the General Assembly.
SENATE BILL No. 140
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 16-21-2-17; (11)IN0140.1.1. -->
SECTION 1. IC 16-21-2-17 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2011]: Sec. 17. A hospital that is licensed under this article or a
hospital's governing board may not enter into an employment
contract with a health care provider that includes a
noncompetition agreement clause prohibiting the health care
provider from working in another hospital or health care setting
in the area for a certain length of time after the health care
provider's employment contract with the hospital or the hospital's
governing board expires or is terminated.
SOURCE: ; (11)IN0140.1.2. -->
SECTION 2. [EFFECTIVE JULY 1, 2011] (a) IC 16-21-2-17, as
added by this act, applies to a contract that is entered into or
renewed after June 30, 2011.
(b) This SECTION expires July 1, 2013.