Non-compete and liquidated damages clauses in dental employment contracts must adhere to specific limits for enforceability. Courts require reasonable geographic and temporal constraints on non-competes, typically within patient-served areas under two years. Liquidated damages should reflect actual losses, especially in cases where damages are difficult to gauge. Courts may still reject these provisions if they find breaches or inequity. Employers are advised to strike a balance between safeguarding their interests and fostering positive work environments.
Schulte, Daniel JD
"Unreasonable Non-compete and Damages Provisions in Employment Contracts,"
The Journal of the Michigan Dental Association: Vol. 103:
4, Article 6.
Available at: https://commons.ada.org/journalmichigandentalassociation/vol103/iss4/6