Non-Compete Contract

By Dr. Shelly Ferris, DVM, Regional Medical Director, Vetco Total Care

NOTE: This blog was originally published prior to the FTC ruling banning noncompetes announced on April 23, 2024. Vetco Total Care has never required noncompete contracts of veterinarians we hire.

When Dr. Ridgway joined a veterinary hospital after graduation, she considered herself lucky to find a thriving practice close to home and family. She had no idea that a sudden change in hospital management would mean longer hours, overbooked appointments and upset clients who felt rushed. One by one, the technical staff left, creating an even more stressful environment. She found a new role nearby, only to be reminded of a non-compete clause that prohibited her from working within 15 miles of her current practice for the next 18 months. Feeling desperate, Dr. Ridgway accepted a job 40 minutes from home at a smaller practice offering few employee benefits. It took two years for her to get her career back on track at a practice where she finally felt at peace.

While many veterinary professionals are lucky to have found their dream veterinary practice, many feel ‘stuck’ in a practice that isn’t the right fit—whether the culture isn’t supportive, the salary and benefits lacking, or there’s a rigid set of protocols inhibiting them from working to their full potential.

It is important for those who feel stuck to find a new practice that aligns more closely with their values, personal and professional goals. However, many don’t realize that signing a veterinary non-compete agreement may hinder these plans. Non-compete agreements are commonplace in both corporate and private-practice veterinary medicine. So, what are they and how do they do more harm than good?

What is a Non-Compete Contract?

The purpose of a veterinary non-compete contract, clause or non-compete agreement is to prevent a veterinarian from taking the practice’s "good will" or confidential information to a competing nearby practice. Non-compete agreements typically prohibit a veterinarian from taking a job practicing medicine at another hospital within a certain geographic radius of the practice for a certain period, whether they resign or are terminated. They can restrict veterinarians’ earning potential, growth opportunities, and autonomy by preventing them from taking another veterinary position in the same market or even opening their own practice.

A non-compete agreement can be a stand-alone contract or a clause buried in an employment contract, so it’s important to read the fine print. A practice can sue, require a hefty buyout, or even request an injunction to stop a veterinarian’s practice if an employee breaks the terms of the contract. While provisions vary by city and state, the restricted radius can be several aeronautical miles from the practice, and in some extreme cases, can even limit hospital leaders from taking on similar leadership roles anywhere for one-to-two years. Keep in mind, the radius is usually defined “as the crow flies” —or a straight line from one practice to another— it’s not based on the actual driving distance, which may be longer.

This radius is especially impactful in dense urban and suburban areas where a 5-10-mile radius may contain as many as 30 veterinary hospitals. In many cities, just a few miles can add a half hour or more to a daily commute. For parents, this may also mean having to change childcare arrangements.

Encouraging Career Autonomy at Vetco Total Care

At Petco, we don’t believe in requiring non-compete agreements from veterinarians. We know they can add unnecessary stress for doctors, create an unhappy environment and disrupt the continuity of pet care. As founding veterinarians of Petco’s Vetco Total Care, we were against non-compete agreements for veterinarians from day one, and have never required any of the veterinarians we’ve hired to sign one. This is just one of the ways we’re committed to encouraging career autonomy and freedom in the industry. Empowering them to practice autonomous medicine and make the right care decisions for their patients is another benefit of Vetco Total Care’s Total Rewards.

Veterinarians devote their lives to the health and happiness of pets and pet parents. They deserve equal opportunities to explore new roles, practices and experiences that give them greater career satisfaction, earning potential and personal autonomy and well-being. They deserve real health and wellness benefits, work-life flexibility, continued education stipends and limitless opportunities to grow, lead and build a practice. To learn more about Vetco Total Care, the freedom to practice autonomous medicine without a non-compete agreement, veterinary career opportunities and our suite of Total Rewards benefits, contact us today.

This article is for informational purposes only and does not constitute legal advice. Please consult a licensed legal professional in your state with questions about employment contracts and non-compete agreements.