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Noncompete contracts

Posted By: what else is new on 2006-07-26
In Reply to:

Has anyone ever been sued for breaching a noncompete contract? Do you know what legal steps are involved? How do these things usually turn out? FYI: The contract was never actually breached.....but this former employer BELIEVES it has been and is suing several of her former employees. She owes one of us money (over $3,000.00) for back transcription. We HAD to quit...she wouldn't pay any of us. But the contract was not breached by any of us (probably by her - dirty hands clause - shady business practices, etc.) Any info would be greatly appreciated!


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noncompete contracts
I emailed you back.
noncompete contracts

Yes the papers have been served. Seeking legal advice soon.  I don't really fear anything as I know we have done nothing wrong. It's just maddening that this person doesn't have anything better to do than to make other people miserable. She doesn't want to make her own money, she tries so hard to take other people's money. I swear, she works harder at trying NOT to work than she would actually have to work if she would just get a job! Get a job lady!


noncompete
An MTSO has done the leg work to obtain her accounts, set up her business with equipment and staffing to cover those jobs 24/7. You don't need to know who her clients are. Your position is to transcribe the work sent to you. I believe it is fine to promote any new business you wish to start and compete in a professional manner by calling offices, scheduling appointments to discuss your own fees and what you have to offer, staffing that work, etc. I think what you describe is completely unprofessional. If you have a problem you take it up with the person you contracted with. I think it is just as outrageous and unprofessional that the physician's office discussed this with you as you are not who they contracted with.
You never signed a noncompete, right?
Besides that, I have it from two attorneys and the State Department of Labor that noncompete agreements aren't legal in many states.  TAKE the ACCOUNT and RUN!!!!  This woman has said that you can have them, she doesn't want them.  They do want you.  You don't owe her any loyalty, especially if she's running her business into the ground.  YOU need to look out for YOURSELF.  That's what I'm doing today is making a list of every potential transcription client in my city and soliciting them by phone with follow-up letter.
just make sure that the client did not sign a noncompete
and if they didn't and you didn't, then sorry folks, but it's fair game! There are many, many unethical and illegal (in some cases and in some companies) things going on in the transcription industry.
I was told by insider noncompete just applies to you not going after their clients. Does not apply
:P
If you're not willing to list your clients, then you shouldn't have a noncompete clause in you

contract, IMO. 


I worked for a local service at one point.  They through a huge account at me that required at least three FT MTs to type and then began to breath down my neck about TAT, blamed me because the client was unhappy and complaining.  I contacted the client directly and spoke with her about their complaints.  I basically told her that I was the only MT typing for their very large clinic.  She hadn't realized that.  Long story short, I told her that I had two other MTs, colleagues of mine and that we would be willing to take on her clinic and promise 24 to 48 hour TAT.


I don't know if the line rate I offered her was above or below what she was paying to the service, but she was willing to accept what I had to offer because the doctors were so unhappy.  Do I feel guilty about what I did?  Heck no!  Someone posted the other day that business is business and that we shouldn't be so emotionally vested in our employer.  They are not going to be looking out for me.  I have to look out for me.  Well I agree withat, business is business and the service was blaming me for their mishandling of that account, threatening to withhold my paycheck because of it and actually did withhold my last paycheck when I resigned.


Some of you, especially MTSOs, will say what I did was unethical.  This is a competitive business and if you can't take the heat, get out of the kitchen.  I refuse to work for services anymore, but if I did, I would flat out refuse to sign any contract with a noncompete clause.  I also think that if you are an IC for a service, the service should be required to sign a contract listing the IC terms and conditions.  It's only fair.


Just my opinion on the whole contract thing.


Contracts
Does anyone have copies of Independent Contractor contract, Non-compete contract and confidentiality agreement.  My hard drive crashed awhile back and all my contracts were on there.  I run a small business and can't seem to find these anywhere on the Web.  Any contracts e-mailed to me would be greatly appreciated.  Thanks in advance, Robin
Contracts out
To Medquist and OSI.  From what I remember, they do not transcribe all that well -- a lot of mistakes.
Contracts
It is true. The only thing is depending on the contract some guidelines are really strict. They usually ask for a 70-character line count, but it is definitely worth bidding for because if you do a good job it is a 5 year contract in most cases?

Contracts
I haven't used a written one for years but I basically just outlined what services I would be providing at what price, TAT, and what I expected from the account.  There is usually a 30 day cancellation clause unless it is due to poor quality or not meeting TAT.  My accounts now have been on a handshake and a verbal agreement and have lasted for over 15 years.  
contracts
Well..that is a subject all right! I bill on the 1st and 15th. On my invoice, it states, "due and payable upon receipt." That way there is no denying they know I want to be paid now. I actually discuss with the Transcription Coordinator at the time of the contract that I expect to be paid promptly, that I am a small business and that I cannot float paying my MTs and that I must pay them or they will not work for me...MTs are sort of like that, if we don't get paid promptly, we don't work. I hope that helps you and good luck with your new contract.
I have no contracts
When I first started out I had contracts wtih some accouints -- I did the work as spcified, they paid as specified and either count cancel with 30 days notice.  It worked.  I now have 5 accounts, no signed contracts, verbal only.  I do the work as promised, I follow HIPAA rules, they pay on time - no bounced checks, I raise my rates when I need to -- they have been with me for 16 to 6 years.  No difference.  Works for me.  You can cancel the service at any time either side, if they don't pay with or without a contract you can go to court.  I do the job as promised, they do their part as promised.  Works for me.
I do not do contracts
I have worked both ways, as an IC and the MTSO and I do not do contracts but I do try to pay prior to the doctor paying me.  But most of the time I do know the IC's quite well as it is a small circle here in Portland and we just work on trust I guess.  I  have never had anyone try to take my accounts but then I have always been up front and fair with my help.  I would ask though when you might expect payment prior to the big project.   But like I said, we are all pretty local and if the word ever got out that you either took someone's account or you did not pay, it would be all over and could easily ruin your business.    But again, nothing hurt in asking, as a small MTSO I would not have a problem with someone asking me when they might expect payment.    Good luck.   Patti 
need contracts

In hindsight, it would seem a good idea in such a situation would be to have a notarized agreement between yourself and the person you get to fill in for you.  This agreement would stipulate that they are only to fill in for you in your absence when requested by YOU and they are not permitted to seek or accept employment with this client as long as you are their transcriptionist, even if it's your best friend.  This is business, not a Saturday lunch together. 


Then you could also get the facility to sign a notarized agreement with you stating they will not offer employment to your fill-in.  They are to understand that this person is only a fill-in for you and is not permitted to solicit your clients because he/she has a legal agreement with you to not do so.  Should they violate this, you will pursue legal means, etc.  You must protect your job as well as you can.     


You can also put in a contract that you have the first right of refusal to turn down work if the workload increases and the facility wishes to hire more staff.  Then they can't go behind your back and hire others without offering you the work first.  You have yourself covered at both ends this way.  I've done such contracts and they befuddle the client so much that they willingly agree to sign because it sounds like I know a whole lot more than they do.  Get a lawyer to draw something up so all your bases are covered. 


Being nice, honest--that has to do with character and it's wonderful if the people for whom you work are that way.  But in business, it's money that comes first.  The two are not incompatible but it seems these days they aren't often found together anymore.  Do a bullet-proof contract and give it to your clients in a very cordial but professional manner.  They will respect you for it.  Your business and income are every bit as valuable to you as theirs are to them and explain that to them as you hand over the contract for them to sign.  If they can't see that, you don't need to deal with them and move on.  Make the playing field level here and protect yourself.  You are a professional too!


Contracts
Your information regarding contracts is just what I need.  I never thought I would need to get so "formal" but just when you think you are in a comfort zone, you're not. Much appreciated!!!
IC Contracts - sm
I've got a question for those of you who service your own personal accounts.  I currently work as an IC for another company and I am getting ready to take on a bunch of radiology reports from one doctor.  (I'll work both places) I'm going to be paid by the page.  Have any of you asked for a contract for a guarantee of work, i.e. he will guarantee a certain number of reports a week?  What about contracts? Is there any place where I can download a contract and use it as a template for a foundation? Thanks guys.
contracts are all different SM
I've had contracts that span from year to year and then new ones are signed (if invited to stay on, sometimes they don't need the same amount of workers from year to year).

All of my contracts have stated some type of notice to be given as this could affect accounts if left short-handed. I give the MTSO forwarning, why not, it's called repect.

Also - contracts can be negotiated, you know. If there is something in there you don't agree with, call and discuss it. Ask questions.

and contracts...works for me 20+ yrs..nm
x
Government contracts

Has anyone out there heard or looked into government contracts transcribing for VA hospitals - a friend called me today with this proposition - she said there were two places to look for work - one is called rsp.com and the other is fedbizops.com.  She put in a bid for a radiology account with 600,000 lines a month and said that she thought that would take two people.  I'm just trying to find out if this is legit or not.  I'm not wanting any extra work for myself, but this just sounds too good to be true.


 



Govt contracts... been there
done that.  I wouldn't do another one in a million years.  Most are one-year contracts with 4 one-year renewals (their discretion, no guarantee).  Their systems are mostly Dictaphone, some with VPN for voice.  Most of the cost is on you for anything connected to account such as C-phones.  The amount of paperwork and reports they wanted daily was overwhelming.  They call you every 10 minutes 24/7 with "need it right now" stuff.  The 2 facilities I did had about 75% ESL doctors that rotated in/out every few months -- especially if a military hospital.  Then, because it's posted on the web site who was awarded the bid, I started getting a lot of calls from offshore companies wanting to work on the accounts, asking me not to tell the contractor.  I also got a few calls from offshore companies asking if I would "front" for them and bid on contracts cuz they needed an American company to actually have the contract.  As of just a few months ago, you needed evaluation from D&B (your cost $250) and their required liablity insurance limits (varies with accounts).  You don't just go in and bid -- it's a process of applying to be a vendor first and filling out LOTS of tedious paperwork.  (My last contract was about 80 pages long to fill out).  If you miss one little thing in this paperwork, your bid gets bounced.  They do call all of the required references, and if you haven't done the VA contract volume before, it's not likely they will award you contract.  Getting paid took literally months - I was about broke and had borrowed money before I got my first check.   (We didn't do anything incorrectly for billing, just took that long cuz it sat on somebody's desk)  I'm sure others have had better luck - this was just our experience with these contracts.   I wish you better luck!
Sample Contracts

I found this the below link quite helpful, particularly sample contract 2.


HTH


Best wishes.


How many companies or contracts does everyone have.
It seems most Transcriptionist have to have more than one job.  I want to work for just one company but have always worked for two and three to make sure I had work if one was low.  Does anyone work for just one company ?
There are some sample contracts on
www.medword.com.  Google "Transcription contracts".  You can cut and paste into a word document.  You are probably better off charging per line.  Going rate is anywhere from 13-17 cpl depending on where you are located.    
contracts and mergers

This can be tricky.  You need to have a lawyer look at the contract you made with the physician and see if you made a contract with him as an individual or the contract was made with his business and then see what can be done.  If it was made with his business, then you may be covered and be able to fight this more easily. 


I think you also need to know what the new contract for the merger covers -- are all previous services used by that physician automatically transferred over to the merged group?  If not, you may have been cut out of the deal.  OR, you may be included and they are not telling you.  Also, if you are not covered under the new arrangement, you may be able to go after him for expected income based on what your existing contract states with that physician.  You may be able to go after him personally for money owed. 


We're talking 6 months of income here as I see it.  Get a lawyer and go get what you deserve if there is any possible way--either by being retained by the new group or bringing charges of some sort.  Make sure the lawyer stipulates that THEY pay all legal costs involved.  They may be more willing to settle with you, give you what you want, rather than go through all this.  Stand your ground.  You are a business and don't let them cheat you.  There are a lot of things in contracts that a non-lawyer can't see but can very well be to your advantage. 


Good luck! 


contracts and security

Yes, the only real "comfort zone" is what is covered in a legal document.  There's your security to a certain extent.  That's not to say that will eliminate all problems, but it gives people an idea you're serious and professional about your servies and you don't expect to be taken advantage of.  Demand all that you want.   Then decide down the road how strictly you want to hold the other party to those demands. 


Think of how business people operate -- they argue at the conference table over clauses in contracts and then go play golf together the next weekend.  It's expected.  It's part of running a business.  Business is business, social is social.  Draw a line here between the two.  Be nice when you type a term paper for your neighbor's kid.  Be strict when you deal with clients. 


Anyone can challenge a contract or agreement, and sometimes you will lose or it won't be worth the fight to pursue it. Every situation is different.  That's why it's best to get the best attorney you can afford, the most experienced in this, to draw up that contract to begin with.  Obviously the clients for whom we work have their own lawyers and the money to pursue things.  But looking at the overall picture, it's just easier to give into your demands as a Transcriptionist than fight, especially if they really want to keep you which seems to be the case here.  If there is a disagreement and you walk, their work is going to get backed up until someone else is trained and up to speed (in most situations).  Who wants that hassle?  It's easier to give into your demands.  Lawyers aren't cheap for anyone, either side.


I'd sit down with these people and explain what they have done to you because they really may not realize how it is affecting you.  Be pleasant about it but firm.  Then have that contract ready and re-negotiate.  Tell them your lawyer has advised you to do this with every client you have and you are changing your way of doing things to protect your business.  Who can fault you for that?  It makes perfect sense.  Then you'll know where you really stand with them and you can make your decision to stay or move on.  And when you deal with anyone else, present the contract to them and make sure all parties understand what they are signing before you do one bit of paid work for them.   


One other tip:  This is not meant in any way to offend you, as I'm sure your sklls are good, especially if they asked YOU to find a replacement.  They assumed they would get someone just as good as you.  Don't do it.  Don't ever hire a fill-in who is equal to or better than you.  You want them to be exceedingly glad upon your return!!!  Doing this even puts you in a better bargaining position as far as rate increases in the future.  If you want to help out a friend, get her/him an account you don't want.  OR, hire them as a subcontractor for you so that they do not deal one-on-one with the client except to do the work.  They are not to be involved in any negotiations whatsoever.  But I still prefer hiring below your level of expertise.  It's better for you that way. 


Company Contracts

For those of you who work for MT companies, do you have to sign a contract regarding working for other companies as well?


Since supplemental income seems to be a big part for many, I am wondering if there is ever any problem with that.


Internship contracts
I am wondering if anyone has experience with companies requiring an internship contract that states that if the intern quits anytime within 2 years of signing that she will be charged $25 per hour in logged QA fees that could "potentially amount to thousands of dollars" (per contract). The starting line rate is decent, but there is no guaranteed increase, and advancement is at the discretion of the employer/mentor. Is this legal?
question about gov contracts.
Is it standard practice for a VA to 'sanitize' hard drives before paying up?
Getting MT contracts/subcontracting
Are there any MTs on this board who get their own contracts or subcontract directly from the MTSO that individual practices, hospitals, clinics, etc. contract with that would be willing to give me some pointers about getting my own accounts?  You may feel free to email me privately if you want.  Thank you in advance.
Contracts...wouldn't you think...sm
a contract signed between the MTSO and hospital or private practice would involve more legalities and red tape than a contract between an MTSO and your remote MT? I've worked for private practices and from what I've seen,they don't sign or do anything without involving an attorney. I also worked for one small MT company owned by someone I knew that didn't involve much more than a verbal agreement. Fortunately it worked out. Just a thought.
Giving out SS# for new contracts

Is there anyone else, besides me, who's very hesitant on giving out your social security # to new contracts?    Am I better off trying to get a Federal Tax ID # and using that instead?   


I know other IC's who make it part of their contracts that if they are being let go, sm
they require XX notice; fill in the X's. I know one friend, who puts in her contracts that if they no longer need her services, she wants at least a 2 month notice and they signed it. This may protect you for this happening again in the future. If there is no signed contract between the two of you stating that she has to give you notice or vice versa, then it is an "at will" agreement and either party can end it at any time!
There are no long-term contracts
I've rented from them several times, both paying off items and giving some items back when I got something to replace it. You can expect to pay two to three times the price (if not more) for an item then if you just went and bought the item outright which to many sounds outrageous, but some of us don't have the money to fork over for more expensive items. I had a good experience with them each time I rented from them whether I kept something for the whole time or I turned the item back in.
IMO I dont think there should be those clauses in contracts...
This is a very competetive career plain and simple and the clients should be able to choose if they want someone else who is better and/or cheaper. Most importantly, most of the companies offshore anyway so if the client chooses to go with someone who doesn't and that person happens to have been with the previous service, the doctor should most definitely be able to!! Not to mention, I feel those services who put that in their contract are not very confident of their own service to have fear of losing clients. Maybe they should better their service to where they need not worry about it. This is of course a debatable issue and i am sure there are many points in both directions, but this is just MY opinion. No flaming intended.
Contracts mean nothing - Freeze rate instead
as someone else suggested- offer to freeze your rate for x years...

I once had a client ask me if I charge the same rate for typing a normal study (which is templated) as I do for other types of dictations. I said, "I will offer you the same discount for the transcription that you offer your patient's for dictating "normal study."

I got a slow smile and no further comment in return...




Contracts for working at companies?

Hi all,


I was wondering, do MOST of the companies require you to sign a contract to work for them? You know, saying how long you will work for them, etc? I have heard a lot about this lately. Is this the norm? It seems to me that one wouldn't want to work for a company requiring this, as I would think that if they were a good company, employees wouldn't need a contract, they would just stay because they are happy?


Contracts for Working at Companies
If you are truly an "Independent Contractor" then YOU present the company with YOUR contract for THEM to sign. YOU bill THEM for your work, after negotiating a price. Have you ever had work done on your house by a contractor? Did you give him a contract, or did he give you one, after the two of you agreed on a price for specific work? Did you tell him what hours he would work, what tools he would use and how he would use them?

The U.S. Department of Labor has guidelines for deciding who is and is not an "Independent Contractor," and working at home has absolutely no bearing on it:
http://www.dol.gov/esa/whd/regs/compliance/whdfs13.pdf

Contracts usually written by MTSO..sm

So, naturally, in whose favor would we expect it to be?  Right!!  2 things I would get absolutely straight on a contract, though, is hours or schedule, if any is to be considered, and a definitive line rate, not in vague terms.


Laws are more 'binding' than contracts.
Out of curiosity, are you an MT or an MTSO who offshores? I find it hard to believe any MT would be defending this.
I've worked for two services that had VA contracts.
It was horrible. Lots of ESLs. High stress MTSOs. No samples or QA feedback.
eScription contracts with hospitals who contract...
with MTSOs.
Contracts....burnout.......etc....open and read
Hello--

I was just reading your post and I do understand where you are coming from. First of all, let me start by saying I will never do a non-contracted job again and every job that I have is contracted. :)

Secondly, I know how you feel about being "stuck inside"--Yep, been there, done that....burnout. I was so ready to go to work in the big world again. So, I left transcription at home, hired a babysitter and went to work in my secondary field as a medical assistant. After three months of it, I was so ready to come back home, and I missed my transcription so badly...AND MY KIDS.

I came back home, been here again for over a year. I can say it is better this time around, I appreciate MT more and I am absolutely taking in every moment I can with my kids. At least I know when my babies get sick, I will be the one nurturing them..and bringing home a paycheck at the same time. :)

Sometimes it is hard to balance everything at once, and the thought of going back outside the home to work seems like an easy answer, but believe me, it is better to be home. :)
Tired of ONE-SIDED contracts that say one thing...
and mean another, always written in contradictory terms to the benefit of the MTSO... I am tired of ONE-SIDED contracts. want to work for what I am worth!!!!!
I believe private MTSOs have to bid on contracts to do military work.
x
Contracts do no good. Doctors' offices break them
I had contracts with my physicians. I put thousands and thousands of dollars into new equipment because they asked for it, trained several transcriptionists at $5,000 a piece, and then they went EMR within a few months despite the contract. They had been setting the EMR up the whole time. Even when I found out about it through a third person, it was still denied. Do not count on contracts. Just because they sign something does not mean they will abide by it.
own contracts versus what is happening with transcription field
can any of you out there who do transcription for local clients give me some insight here. Is it still worth it today to try to go out and get local clients versus working for a national or even in house?  I am so tired of working my you know what off and struggling just to make $12 an hour. When I first started my per hour was not so bad and then other changes came a few years later and I just cannot go on like this and waiting for the good to happen because I am just not feeling it with my company even though they say "those who stick it out will be glad"  I am sooo tired and worn out. Any info regarding on this would be helpful or any advice at all for that matter.  Thanks all. I need a break now. 
Research different contracts and pull out what is applicable to your situation.
There are plenty of contracts to be find through a simple Google search. Some leg work will provide the answers you're looking for.
Help! Need advice. Trying to get my own MT accts in CA. What paperwork/contracts needed??

Hi, I'm trying to start my own small local MT business, and I'm just wondering if anyone knows what contracts/HIPAA paperwork should be signed between Drs. and myself.  I'm clueless on where to begin!


Thnx,


Rachel