Noncompete clauses restrict a physician’s ability to practice medicine for a defined period of time within a prescribed radius after he or she leaves the employer. Penalties for violating these restrictions are generally set forth in the employment contract or, if the physician is an owner of the practice, other legally binding agreements (such as an operating agreement, partnership agreement, shareholders’ agreement, or other similar agreement, depending on the entity’s structure) and may include liquidated damages, injunctive relief, payment of the employer’s attorneys’ fees, assumption of responsibility to purchase tail insurance, and/or forfeiture of buy-out payments or the physician’s accounts receivable. As no two noncompete clauses are exactly alike, physicians should consult with a knowledgeable health-care attorney to understand the precise implications of their particular contract and its postemployment restrictions. By way of further explanation, some contracts may include exceptions for which the noncompete clause will not apply. Common examples of exceptions include if the employer terminates the contract without cause; the physician-employee terminates the arrangement with cause; the employer fails to make the physician a partner; or the physician leaves to practice in another form of setting, such as academic vs private practice. Furthermore, although noncompete clauses are valid in most states, some have ruled them unenforceable.13 Similarly, because most states require that the postemployment restriction be reasonable, a knowledgeable attorney will be able to opine on the reasonableness and enforceability of the restriction.