Veterinary non-compete clauses have become a controversial topic. These employment contract inclusions prevent employees from working for or opening a competing business in a specified geographic area and time frame. Once considered standard practice, the veterinary industry is now questioning the utility and enforceability of non-compete clauses.

At Veterinary System Services , we’ve chosen to forgo non-compete agreements, which can unfairly limit veterinarians’ job prospects and career-earning potential. However, many business owners in the profession believe imposing non-compete restrictions is in their best interest. Here, we examine the pros and cons of non-competes and alternative options veterinary practices can employ to earn team member loyalty.

What are non-compete clauses?
Employers use non-compete clauses to protect their business assets. In veterinary medicine, non-competes generally apply only to veterinarians, preventing them from leaving the practice for one nearby and taking clients or staff members with them. Each veterinary non-compete has specific provisions for what the employee can and cannot do and for how long after terminating their relationship with the employer.

Veterinary non-competes have been standard practice for many years, but have several inherent problems. First, they can prevent veterinarians from leaving a practice that isn’t a good fit, causing them to feel trapped and contributing to the industry’s declining mental health. Depending on practice location, they may have to upend their lives and move to a new job outside the restricted area. 

Additionally, non-competes remove an employer’s motivation to create a better, more innovative workplace, which harms not only employees but also clients and pets. And, despite the threat of legal action should a vet try to break the clause, they are often unenforceable. 

Reconsidering veterinary non-compete clauses
Many in the veterinary community recognize that broadly restrictive non-competes are harmful to the profession and want them to end. And, veterinarians aren’t alone in this quest—the Federal Trade Commision (FTC) ruled to ban non-competes in almost all instances. However, it’s unclear whether or when the ruling will be enforced.

In the meantime, we urge veterinary practices to reconsider using non-compete clauses for the following reasons:
Limited legal enforceability — Non-competes may end up being more trouble than they’re worth, as courts may side with employees over excessively restrictive agreements. 
Restricted professional growth — Non-competes can prevent veterinarians from advancing their careers. 
Reduced employee morale — Employees who sign non-competes may feel trapped and resentful. 
Fewer prospective employees — Non-competes can deter top talent who are looking for flexibility and freedom in their careers.
Stifled innovation — Non-competes lock veterinarians in their roles, contributing to industry stagnation. 

At-will employment and positive veterinary practice culture
Some practices may view veterinary non-competes as a way to guarantee that the time and energy they put into training and mentoring veterinarians won’t go to waste. However, this philosophy can lead to a toxic or negative workplace culture.

You shouldn’t need to trap your employees to keep them around. Instead, focus on creating a positive, collaborative, supportive culture and offering attractive compensation and benefits. Asking an employee to sign a non-compete strains your relationship from day one. Instead, start off on the right foot by empowering your new hires to choose their own path and determine if your practice is truly a good fit, without the threat of legal action.

Alternatives to veterinary non-compete clauses
Non-competes aren’t the only option for veterinary practices to protect their interests. It’s completely reasonable to ask employees to sign less-restrictive agreements that don’t limit their career prospects or determine where they can live. Non-disclosure agreements (NDAs) prevent employees from sharing sensitive information, while non-solicitation agreements prevent employees from taking clients or staff members when they leave.

In an evolving veterinary industry, non-compete clauses are becoming increasingly outdated. Eliminating non-competes and adopting less-restrictive non-solicitation agreements will benefit individual veterinarians and the industry as a whole. In an open job market, increased competition will force practices to improve their working conditions and compensation and new and innovative veterinary businesses will thrive.  

At Veterinary System Services , we believe in empowering team members and creating a positive workplace culture. Contact us to learn about our services or check out our open positions, so you can take the next step in your veterinary career journey.