Restrictive Covenant

A restrictive covenant, in its broadest sense, is a provision that precludes an employee from competing with the employer and/or from working for a competitor of the employer, for some period of time after the employment has been terminated.


Scope

This policy applies to all ACGME-accredited and AOA accredited residency programs at Philadelphia College of Osteopathic Medicine (PCOM).

Purpose

The purpose of this policy is to ensure that the Graduate Medical Education Committee (GMEC) is providing appropriate oversight regarding the use of restrictive covenants in trainee agreements per Accreditation Council for Graduate Medical Education (ACGME) and American Osteopathic Association (AOA) requirements.

Procedure

The ACGME and AOA specifically prohibits the use of restrictive covenants in trainee agreements. In order to ensure appropriate institutional oversight as required by the ACGME and AOA requirements, this policy has been established. Neither the Sponsoring Institution nor any of its ACGME- or AOA-accredited training programs may require residents to sign a restrictive covenant (aka non-competition guarantee).