You are an internist. You are employed for a two year term under a contract with a
Question:
You are an internist. You are employed for a two year term under a contract with a medical practice in Manhattan located at Second Avenue and 40th Street. Your base salary is $250,000 per year, and there is also a discretionary bonus of up to $50,000 per year. You received a signing bonus of $10,000 to help you cover the cost of moving from Houston to New York.
You moved to New York City on January 1, 2019, and started working on February 1, 2019. You have a two-year lease on an apartment that started on January 1, 2019. Your spouse moved with you to New York and started working a new job on April 1, 2019, for a salary of $175,000. Your spouse's prior salary in Houston was $155,000.
Your employment agreement provides regular benefits. It also includes a restrictive covenant prohibiting you from being employed by another medical practice anywhere in Manhattan north of City Hall and south of 72nd Street (the "Restricted Zone"), for one year after you stop working for the practice.
1. On June 1, 2019, you decided to resign, without cause, effective July 1, 2019. Other than the restrictive covenant, are there any legal issues?
2. On June 1, 2019, the practice decided to terminate you, without cause, effective immediately. Other than the restrictive covenant, are there any legal issues?
In the situation in which you decided to resign, can you open your own medical practice within the Restricted Zone?
In the situation in which the practice decided to terminate you without cause, does the restrictive covenant apply?
In the situation in which you decided to resign, can you be employed by a hospital in a clinic, or as a hospitalist?