Non-compete clauses are a common fixture in employment agreements across many healthcare professions, and optometry is no exception. These provisions are intended to protect a practice's business interests by limiting where and when a former associate can practice after leaving. However, if not carefully reviewed and negotiated, they can become a major obstacle in your career path. As an optometrist—especially one early in your career or exploring long-term ownership opportunities—it’s essential to understand what makes a non-compete clause reasonable and how to spot red flags that could limit your future.
Why Employers Use Non-Compete Clauses
Optometry practice owners invest significant time, money, and resources into hiring and training new associates. From building patient trust to sharing proprietary systems and insights into business operations, owners want to ensure that their investment isn’t used against them later. A non-compete clause helps prevent former employees from opening or joining a nearby practice and drawing patients away from the original employer.
For practice owners, the logic is clear: these clauses preserve goodwill, protect confidential information, and ensure a return on their investment. But for associates, especially those who might want to put down roots in a particular area, these restrictions can feel stifling—and in some cases, unfair.
What Makes a Non-Compete Clause “Reasonable”?
Not all non-compete clauses are created equal. Courts generally assess their enforceability based on whether they are reasonable in scope, geography, and duration. Here’s a breakdown of each component and what to look out for:
Geographic Scope
The clause should limit competition only in a geographic area where the practice actually draws patients. If a practice operates in a dense urban environment, a one- to five-mile restriction might be reasonable. In more rural areas, a 10- to 20-mile radius could make sense due to a wider catchment area.
However, overly broad restrictions—like barring you from practicing anywhere in the state—are often viewed as unreasonable and may not hold up in court. Still, it’s far better to negotiate narrower terms upfront than to rely on legal enforcement later.
Duration
The length of the non-compete should also reflect a fair balance. Most enforceable clauses range from six months to two years, depending on the circumstances. A one-year restriction is standard and typically considered reasonable. Anything beyond two years should raise questions—especially if you didn’t build significant goodwill or patient relationships during your employment.
Scope of Services
Some non-competes prohibit you from offering any optometric services within the restricted area. But others may go further, attempting to restrict related or future services—like telehealth consults or opening a retail optical business. A well-drafted agreement should clearly define what types of work are off-limits and for how long. Otherwise, you risk unknowingly violating the clause through unrelated or part-time work.
Common Pitfalls and Negotiation Tips
It’s tempting to skim over a non-compete clause when signing your first contract, especially if the job offer looks appealing. But these clauses deserve your full attention—because they can dramatically shape your options down the line. Here are a few tips for evaluating and negotiating a better non-compete:
Don’t Assume It’s “Standard.”
Even if an employer says the contract is standard, you’re allowed (and encouraged) to ask questions and propose edits. A non-compete should reflect your specific role, expected tenure, and long-term career goals.
Ask for Carve-Outs.
If you plan to stay in the area or may want to open your own practice one day, ask for carve-outs that allow for those future possibilities—especially if the employer isn’t offering partnership or ownership opportunities.
Consider a Buyout Option.
In some contracts, it’s possible to negotiate a buyout clause that allows you to pay a fee to get out of the non-compete. While not always offered, it can be a useful safety net.
Get Legal Review.
An attorney who understands optometry and healthcare law can evaluate whether the clause is enforceable in your state and whether its terms are fair to you. Better to invest in legal review now than face costly restrictions later.
Negotiating a Fair Non-Compete Clause
When negotiating a non-compete clause in your optometry contract, it’s essential to understand what is reasonable and fair. The goal should be to protect the employer's legitimate interests while not unduly restricting your future career opportunities. A fair non-compete should not be so broad that it limits your ability to earn a living in your field, especially if you are considering transitioning to a new practice, opening your own, or relocating.
To ensure the clause is fair, you can ask for limits on its duration, geographic scope, and scope of practice. Optometrists often successfully negotiate clauses that are more specific and narrowly tailored. For example, if the clause covers a 50-mile radius for 2 years, it may be worth pushing back to a smaller area (e.g., 10 miles) and a shorter time frame (e.g., 6 months). You can also seek exceptions for working in specialized fields like telemedicine or corporate optometry, where you would not be competing directly with the previous employer. Always consider the long-term impact of the clause on your career flexibility, and aim for a clause that balances both your employer's need for protection and your future career plans.
State Laws and Enforceability
Optometry non-compete clauses are governed by state laws, which vary significantly. Some states, like California, generally prohibit non-compete clauses in employment contracts for most professions, including optometry. In these states, even if the non-compete is included in the agreement, it may be deemed unenforceable. Other states, however, allow non-competes as long as they meet certain criteria for reasonableness.
Factors like duration, geographic restrictions, and the specific nature of the optometry services provided will be considered when assessing enforceability. Courts are more likely to enforce a non-compete clause if it protects a legitimate business interest, such as safeguarding confidential information or preventing unfair competition. However, they may strike down clauses that are too restrictive and go beyond what is necessary to protect the employer’s interests. It’s crucial to understand the legal landscape of your state before agreeing to a non-compete clause.
In states where non-competes are enforceable, it’s important to evaluate the clause carefully. Optometrists may want to consult with an attorney who specializes in employment law to determine whether the clause is in line with local regulations and fair practices.
Alternatives to Non-Compete Clauses
If you are uncomfortable with a non-compete clause or find that it is overly restrictive, there are alternative options to consider. These alternatives provide protection to the employer while allowing you more freedom in your career.
1. Non-Solicitation Agreements: Instead of preventing you from working in a specific geographic area or for a certain period, a non-solicitation clause can restrict you from directly soliciting the practice’s patients, employees, or business contacts after you leave. This type of agreement is generally easier to enforce, and many optometrists find it less restrictive than a full non-compete.
2. Non-Disclosure Agreements (NDAs): An NDA can protect confidential information (like patient lists, business strategies, or proprietary procedures) but does not prevent you from working elsewhere. By signing an NDA, you can still protect the employer’s intellectual property without being prohibited from seeking employment elsewhere.
3. Non-Disparagement Clauses: These clauses prevent you from making negative or defamatory statements about the practice after leaving. While they don’t restrict where or how you can work, they do help the employer protect their reputation.
4. Revenue Share or Buyout Agreements: In some cases, employers and optometrists can agree to a revenue-sharing model or a buyout agreement, where the optometrist has the option to buy out their non-compete or non-solicitation clause in exchange for compensation. This alternative gives the optometrist more flexibility and ownership of their professional future while providing the employer with some level of protection.
When negotiating alternatives to a non-compete, it’s important to remember that these clauses should still be reasonable in scope and duration, ensuring that they serve the interests of both parties without unduly hindering your future opportunities. Consulting an attorney can help ensure that any alternatives you agree to are legally sound and offer fair protection for your career.
What Happens If You Violate a Non-Compete?
Violating a non-compete clause can have serious consequences. You could be sued for breach of contract, and your former employer may seek monetary damages or an injunction that forces you to stop practicing in your new location. Even if a court later deems the clause unenforceable, the legal process can be stressful, expensive, and damaging to your professional reputation. That’s why prevention—through clear understanding and proper negotiation—is always the best route.
Final Thoughts
Non-compete clauses are meant to protect both sides, but they’re often written with the employer’s interests in mind. As an optometrist, your responsibility is to make sure the contract supports your future, too. Whether you’re accepting your first associate position or considering a long-term role that might lead to ownership, make sure any non-compete clause you agree to is specific, reasonable, and aligned with your professional goals. The best contracts are built on clarity and mutual respect—not fear or vague restrictions. If something doesn’t sit right, speak up or bring in someone who can advocate on your behalf.
Contact Dental & Medical Counsel for Help with Optometry Contracts
At Dental & Medical Counsel, we specialize in helping optometrists navigate the legal side of their careers—especially when it comes to employment contracts. Whether you’re reviewing your first associate agreement or preparing to launch your own optometry practice, our team is here to protect your interests and ensure your future isn’t limited by restrictive terms. Contact us today to speak with a knowledgeable optometry attorney who understands your goals.
Frequently Asked Questions
Q: What is a non-compete clause?
A: It’s a section in your employment contract that restricts where, when, and how you can practice optometry after leaving your current job.
Q: Are non-compete clauses enforceable for optometrists?
A: Yes, but only if they are reasonable in terms of duration, geographic scope, and restrictions. Courts often strike down overly broad clauses.
Q: What’s a reasonable geographic restriction in an optometry contract?
A: Typically between 1–10 miles, depending on the location and patient draw of the practice.
Q: How long do non-compete clauses usually last?
A: Most range from 6 months to 2 years, with 1 year being the most common.
Q: Can I negotiate a non-compete clause before signing?
A: Absolutely—you should always review and negotiate contract terms, including non-competes.
Q: What’s a carve-out in a non-compete clause?
A: A carve-out allows exceptions to the restriction, such as ownership opportunities or working in a different setting (e.g., corporate vs. private).
Q: What happens if I violate a non-compete?
A: You could face legal action, including an injunction or monetary damages, even if the clause is later ruled unenforceable.
Q: Can I work in telehealth if I’m under a non-compete?
A: It depends on how the clause is written. Some cover virtual services, so be sure the scope is clearly defined.
Q: Is a statewide restriction enforceable?
A: Rarely. Courts tend to reject clauses that are too broad or go beyond what’s necessary to protect the practice.
Q: Should I have a lawyer review my optometry contract?
A: Yes—especially to assess non-compete clauses and ensure your long-term goals won’t be compromised.
About the Author
At Dental & Medical Counsel, PC, we understand navigating the legal process can be tricky. We believe every optometrist deserves the best advice and service so optometrists can do what they do best, treat their patients. We make their lives easier by providing expert guidance, so they can focus on their personal and professional aspirations. We are optometry attorneys.
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About Ali Oromchian, Esq.
Your Optometry Lawyer
In addition to being a optometry lawyer for almost 20 years, Ali is also a renowned speaker, throughout North America, on topics such as practice transitions, employment law, negotiation strategies, estate planning, and more! Ali has helped hundreds of optometrists realize their professional goals and looks forward to aiding you in navigating the legal landscape.
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