Good Cause Termination Sample Clauses

Good Cause Termination. In the event of a Change of Control, for a period of six months thereafter, the EMPLOYEE may terminate this Agreement for Good Cause.

Good Cause Termination. Employment in California is presumed to be at-will unless the parties specify otherwise. Under at-will employment, an employee can be terminated for any lawful reason, with or without notice, provided that the at-will status has not been modified by either an express or implied promise to terminate for cause. Many physicians will negotiate for a good cause termination standard, which typically allows termination for defined conditions such as failure to meet the employer’s reasonable performance standards, failure to maintain certain hospital privileges, moral turpitude issues, and similar reasons. The agreement should also address whether there will be an initial term of guaranteed employment (e.g., one year). When a term exists, the parties will also need to specify whether the contract can be terminated sooner provided that a certain amount of notice is given, and whether it automatically renews. Corporate Practice of Medicine: Under California’s Corporate Practice of Medicine (CPM) doctrine, unlicensed persons are prohibited from interfering with or influencing a physician’s professional judgment. Certain health care decisions can be made by a licensed physician only. In addition, certain business or management decisions and activities, resulting in control over the physician’s practice of medicine, must be made by a licensed physician. Finally, certain medical practice ownership and operating structures are prohibited. For example, a business offering spa treatments that include medical procedures such as Botox injections, laser hair removal, and medical microdermabrasion, that contracts with or hires a physician as its “medical director,” where that physician does not own the practice, would be unlawful. Duties: The agreement should Buy-In: Some healthcare providers may want to give the physician the ability to eventually buy in to the practice, provided that certain conditions are met. Factors to consider include whether the ability to buy in will be tied to longevity, performance, or a combination the two, the maximum amount of shares, and how to handle issues such as simultaneous withdrawal of physicians from the practice. Liability Insurance: Tail coverage from the physician’s prior employment must be addressed. In addition, the amount of insurance, and whether it will be on an occurrence or claims made basis is critical. Claims made policies typically require tail coverage, so the agreement should also address which party pays for tail coverage ...