Senate OKs Lauria bill prohibiting noncompete clauses for in nurse practitioners’ contracts
Such contracts can contribute to shortage of primary care providers
STATE HOUSE – The Senate today approved legislation sponsored by Sen. Pamela J. Lauria that would prohibit noncompete clauses in employment contracts for nurse practitioners.
The legislation aims to eliminate a barrier that not only prevents nurse practitioners from changing jobs, but also contributes to the shortage of primary care providers in Rhode Island.
“Enforcing noncompete clauses that prohibit nurse practitioners from practicing within a certain radius can effectively make it impossible for them to change jobs, particularly within certain specialties,” said Senator Lauria (D-Dist. 32, Barrington, Bristol, East Providence), who has worked as a primary care nurse practitioner for 25 years. “We are all aware of how hard it is to find primary care providers in Rhode Island today, and we should not allow noncompete clauses to curtail nurse practitioners’ ability to provide health care to Rhode Islanders.”
The legislation (2024-S 2220), which also passed the Senate last year, is similar to a law enacted in 2016 that prohibited noncompete clauses in employment contracts for physicians. Under Senator Lauria’s legislation, any noncompete clauses in nurse practitioners’ contracts would be void. The bill would prohibit restrictions upon where a nurse practitioner’s right to practice in any geographic area or with any current patients for any period of time after the termination of the partnership, except in connection with the purchase and sale of a practice, and in that case, for no more than five years.
Nurse practitioners are nurses with advanced clinical education and training who are licensed to care for patients without supervision from a physician. They share many duties with physicians, and many serve as primary care providers in Rhode Island.
Senator Lauria added that, in a state as small as Rhode Island, most health care is provided within a 10-mile radius of the hospitals in Providence, so noncompete clauses that prohibit nurse practitioners from working within a certain radius can effectively prevent some from finding any job in the state. Such restrictions also discourage health care providers, especially primary care providers, from choosing to work in Rhode Island, where reimbursement rates are already lower and caseloads are higher than in surrounding states and in specialty practices.
The legislation now goes to the House, where Rep. June S. Speakman (D-Dist. 68, Warren, Bristol) is sponsoring companion legislation (2024-H 7696). That bill had a hearing before the House Health and Human Services Committee Tuesday.
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