Is a Contract of Medical Employment Legally Enforceable?
March 28, 2022
Similar to most U.S. states, Arizona is an ‘at-will’ employment jurisdiction. As described by National Conference of State Legislatures (NCSL), at-will employment is a system whereby both employers and employees have the right to end the relationship at any time, with or without cause. However, employment contracts are common in many industries, including medicine.
You may be wondering: Are medical employment contracts legally enforceable? The answer is ‘yes’—at least assuming that they are properly drafted and meet the requirements of the law. In this article, our Scottsdale medical contract drafting attorney explains the most important things to know about the legal enforceability of medical employment agreements in Arizona.
Starting Point: Medical Employment Contracts are Legally Enforceable
A medical employment agreement is a legally enforceable contract. There is no specialized law or provision that allows parties to get out of these contracts in Arizona. When a health care provider and an individual medical professional agree to sign an employment contract, Arizona will hold them to the terms of the contract. Indeed, courts in Arizona give parties relatively wide discretion to come to their own contract terms.
For this reason, it is imperative that any contract that you enter into is properly drafted and that it effectively protects your best interests. This is true whether you own or operate a health care employer or you work as a physician or other medical professional. Be sure that your medical employment contract is drafted and reviewed by a qualified attorney who has specialized skills and experience. A lawyer can help you address any potential issues related to enforceability.
However: A Contract Could Potentially Be Rendered Invalid for a Number of Reasons
There is an important caveat to the enforceability of medical employment contracts in Arizona. An agreement that is poorly constructed or that violates state or federal law could be ruled void. A void contract is an agreement that is effectively illegal and illegitimate. As such, it is a contract that is unenforceable. A medical employment contract should conform to all requirements set out by the Arizona Medical Board.
Void medical employment contracts are complex. In some circumstances, a fundamental drafting error or an unlawful term could render the entire agreement null and void. However, in other cases, a problem with the contract may also render specific terms unenforceable. For example, an overly broad non-compete agreement in a medical employment contract could be ruled unenforceable in Arizona, even if the rest of the contract is deemed legally valid.
Schedule a Confidential Consultation With an Arizona Medical Contract Attorney
At Chelle Law, our medical industry employment agreement attorneys are committed to providing top quality, cost effective services to clients. If you have any questions or concerns about the enforceability of a medical employment contract, we are here to help. Contact us today to arrange your completely confidential consultation. From our main office in Scottsdale, we review medical contracts throughout Arizona, including in Phoenix, Mesa, Gilbert, Glendale, and Tempe.