Non Compete Agreement for Dermatologists - 6 Things to Know Before You Sign

You’ve just been offered a position with a dermatology practice. The pay is solid, the location works perfectly, and the opportunity is exciting. But as you read through the contract, one section jumps out - the non-compete clause.

It’s a common provision in physician contracts, but that doesn’t mean it should be taken lightly. Depending on how it’s written, a non-compete could limit your ability to work in your specialty for months - or even years - after you leave the practice. That’s why having it reviewed by a business attorney who understands physician agreements is one of the smartest steps you can take before signing.

Here are six things you should know about your non-compete agreement before you agree to the terms.

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1. Know the Rules in Your State

Each state approaches physician non-compete agreements differently.

Questions to ask yourself when reviewing your contract:

• Does my state limit or prohibit non-competes for doctors?

• Are there different considerations for specialists like dermatologists?

• How have courts in my area ruled in past physician contract or partnership disputes?

Before signing, speak with a business attorney to give you a clear picture of your legal position.

2. Check the Geographic Restrictions

Non-competes often set a radius around the practice where you cannot work after leaving. If the distance is too wide or the boundaries are vague, it could mean you’d have to move or give up a large patient base.

Look for:

• A clearly defined distance in miles from a specific office location

• Geographic limits that reflect the actual patient market

• Avoiding overly broad terms like “within the region”

3. Pay Attention to the Timeframe

The length of the restriction matters as much as the distance. In dermatology contracts, it’s common to see terms ranging from several months to two years. The right duration should protect the practice without forcing you out of work for too long.

Consider:

• Shorter durations are often easier to enforce

• Senior positions sometimes carry longer restrictions

• The timeframe should relate to protecting legitimate business interests

If the terms seem too long, an attorney can help negotiate something more reasonable.

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4. Make Sure It Fits Your Career Plans

A non-compete should make sense in light of where you see yourself in the next few years. If you plan to stay local, certain restrictions could cut off your options.

Ways to protect your future:

• Avoid limits in areas you may want to practice again

• Clarify whether the restriction applies to all dermatology or just certain procedures

• Work with advisors in Estate Planning, Tax Planning, Financial Planning, Private Banking, and Exit Planning to ensure your agreement supports your overall goals

5. Look for Buyout Options and Exceptions

Some agreements let you “buy out” the non-compete for a set price, giving you flexibility if you want to work in the same area later. If this is important to you, make sure it’s included before you sign.

Review:

• Whether a buyout option is offered

• How the amount is calculated and payment terms

• Any built-in exceptions, such as teaching, telehealth, or research work

6. Get It Reviewed Before It’s Final

Once you sign, the terms are much harder to change. A thoughtful review now could prevent serious career limitations later prevent future partnership disputes or conflicts that my arise down the road.

It can also ensure long-term wealth strategies that coordinate with asset protection, and retirement planning strategies.

Key Points to Review in a Dermatologist Non Compete Agreement

When reading through your contract, pay special attention to:

• Geographic Scope – Exact boundaries for the restriction

• Duration – How long you’re restricted from practicing after leaving

• Scope of Services – Whether it covers all dermatology or specific treatments

• Buyout Option – If and how you can remove the restriction

• Exceptions – Situations where the restriction won’t apply

• Enforcement & Penalties – What happens if the clause is violated

• Practice Ownership & Structure – If you’re a partner or plan to become one, your Business Structure can affect how a non-compete applies and how partnership disputes are resolved.

Plan With Intention. Secure Your Future.

Before you sign a non-compete agreement, make sure you understand exactly what it means for your career and your future options. Our advisors can review your agreement, explain the terms in plain language, and help you negotiate fair and reasonable conditions.

Protect your livelihood now so you can focus on building a successful and lasting dermatology career.

→ Review Your Contracts Now With an Attorney

FAQs About Non Compete Agreements for Dermatologists

Are non-compete agreements for dermatologists enforceable?

In many states, non-compete agreements for dermatologists are enforceable, but it depends on several factors. State laws vary, and courts typically look at whether the agreement’s duration, geographic scope, and restrictions are reasonable and protect legitimate business interests. In some states, certain medical professionals may have additional protections or exemptions, so it’s essential to have the agreement reviewed by an attorney familiar with physician contracts.

Can I negotiate the terms of a dermatology non-compete agreement?

Yes, dermatology non-compete agreements are often negotiable. You can request changes to the duration, geographic radius, restricted services, and even add exceptions such as teaching, telemedicine, or research work. Negotiating contracts before you sign is the best time to make adjustments, as it’s much harder to change the terms once the agreement is executed.

What can I do if I already signed a dermatology non-compete and want to leave?

If you’ve already signed a non-compete and want to leave your dermatology practice, you may still have legal options. An attorney can review your agreement to identify potential loopholes, overly broad terms, or state law limitations that could work in your favor. In some cases, it’s possible to negotiate a buyout or reach a settlement that allows you to continue practicing within the restricted area.

Is it worth getting a dermatology non-compete agreement reviewed by a lawyer?

Absolutely. A legal review is a small investment compared to the potential career and financial impact of being restricted from practicing in your specialty. An experienced attorney can explain your rights, highlight red flags, and help you negotiate fairer terms — potentially saving you years of unnecessary limitations.