Can a Dentist’s Social Media Posts Breach a Non-Solicitation Agreement “IRL”?
Jordan Uditsky • December 16, 2019
I don’t think it’s a stretch to presume that if you are a dentist or member of a dental practice, you have some kind of social media presence. Sure, it may be a Facebook or LinkedIn page that has been gathering dust since you first set it up years ago. For many dentists, however, active social media participation is a vital part of developing their practices, attracting new patients, and promoting awareness of their services and credentials.
But if you have moved on to a different practice or opened your own and are bound by the terms of a non-solicitation agreement, your online posting, friending, and connecting can raise some tricky issues “IRL” (“in real life,” as the kids say).
Non-solicitation agreements limit an employee’s ability to actively seek the business of the employer’s current patients/clients/customers for a given period, though they are free to set up shop and do business. Recently, courts here in Illinois and across the country have started to weigh in on whether and what kind of social media activity can constitute solicitation in violation of a general non-solicitation provision that does not specifically address social media use.
Generic and General vs. Specific and Targeted
The common thread in the developing case law is one which distinguishes between two types of social media activity:
- generalized social media engagement, such as LinkedIn or Facebook pages and posts, as well as friend or connection requests that do not substantively encourage recipients to become patient, customers, or employees
- posts and friend or connection requests targeted to specific people or groups and/or clearly focusing on attracting patients, clients, and employees to the business or practice
While every case presents specific facts and circumstances that will play a role in a court’s analysis, the former category of social media use is likely to be okay, while the latter may expose dentists to liability for breach of their non-solicitation agreement.
A 2017 decision by the Illinois Appellate Court contains a robust discussion about the topic and how courts in other jurisdictions have ruled.
In Bankers Life & Cas. Co. v. Am. Senior Benefits LLC, a former employee of the plaintiff moved to a new job and sent generic LinkedIn connection requests to three of his former colleagues who were still employed at Bankers Life. While the requests themselves contained nothing of substance, if those colleagues accepted the invitations and looked at the employee’s profile page, they would see a job opening posted by his new employer. The plaintiff claimed that this constituted solicitation of employees in violation of the former employee’s agreement.
The court rejected the plaintiff’s claims and held that a generic connection request to those employees, without more, does not constitute solicitation because “the next steps, whether to click on [plaintiff’s] profile or to access a job posting on [plaintiff’s] LinkedIn page, were all actions for which [plaintiff] could not be held responsible.”
Look at the Substance
In arriving at its decision, the court noted other cases involving similar and distinguishable fact patterns, all of which provide a good idea of where courts will draw the line between acceptable social media use and prohibited solicitation. Though these decisions do not bind Illinois judges, courts in other jurisdictions have found the following to not be violations of non-solicitation covenants:
- a web designer updates his LinkedIn page to reflect his new job and adds a post encouraging his contacts to “check out” a recent project he worked on.
- becoming friends with former clients on Facebook.
- posting a job opportunity on LinkedIn (as opposed to sending it to specific employees).
- employee's postings on Facebook touting his new employer's product and which was viewed by former colleagues did not violate agreement to not recruit employees from his former employer.
In contrast to these examples, the court also cited a federal case from Michigan
in which a former employee published a blog and other posts on Facebook post urging his former co-workers to leave his former employer by stating, "If you knew what I knew, you would do what I do."
Finding in favor of the employer, that court noted that “it is the substance of the message conveyed, and not the medium through which it is transmitted, that determines whether a communication qualifies as a solicitation… Communications qualifying as solicitations do not lose this character simply by virtue of being posted on the Internet."
For dentists who move on to greener pastures while bound by a non-solicitation agreement, it is the “substance” of their subsequent social media activity that they need to carefully consider before clicking “Enter.”
Though each situation must be evaluated on its own set of facts and circumstances, connection and friend requests to former patients may be acceptable provided such requests do not tout their new practice or otherwise encourage those patients to switch dentists. Similarly, social media posts and pages visible to the general public that promote a dentist’s new practice should avoid being specifically directed to former patients or risk violating a non-solicitation.
Again, every contract and every social media post is different. If you are a dentist or practice that has concerns about whether your social media activity or that of a former colleague may raise issues with existing contractual limitations, you should discuss your concerns with an attorney experienced with dental non-solicitation agreements.
Grogan Hesse & Uditsky: Serving Chicagoland’s Dental Professionals
At Grogan Hesse & Uditsky, P.C., we focus a substantial part of our practice on providing exceptional legal services for dentists and dental practices, as well as orthodontists, periodontists, endodontists, pediatric dentists, and oral surgeons. We bring unique insights and deep commitment to protecting the interests of dental professionals and their practices and welcome the opportunity to work with you.
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As all dental practice owners know, insurance companies frequently make adjustments to their reimbursement amounts, leading to the common circumstance that a patient who paid a certain amount at the time of treatment may be entitled to a credit from the practice. That credit, usually kept on the practice’s books so that the patient can apply it to future services, has two distinct qualities that have significant legal and financial implications when a practice is about to be purchased or sold. Failure to account for and address such outstanding patient credits early in a transaction can lead to unwanted surprises as well as potentially costly penalties. That is because a patient credit is not only a liability on the books of the practice, it is also the as-yet unclaimed personal property of the patient. That latter characteristic comes with legal obligations under state unclaimed property laws. If you are buying or selling a dental practice, here is what you need to know about handling patient credits during and after the transaction. Are you interested in speaking with one of our attorneys? Click here to contact us now. Accounting For Credits in the Purchase Price More often than not, unused patient credits remain just that – unused. If a practice purchaser knew for an absolute certainty that the patient would never return and ask for the credit to be applied to new services, it would not impact the underlying practice valuation or sale price. Of course, nothing is certain, and if a practice has thousands, tens of thousands, or hundreds of thousands of credits on the books, even a fraction of those credits, if redeemed, could have a significant impact on the practice’s profitability. That is why any patient credits should be disclosed, identified, and addressed as early in the transaction as possible so that neither the buyer nor seller find themselves in the uncomfortable position of renegotiating the purchase price or providing the buyer with a credit. Reporting and Accounting Obligations Under Unclaimed Property Laws Any business holding goods or funds that belong to a customer, client, or other company or individual cannot simply pocket that property or money because its owner may have forgotten about it or is unaware of its existence. If a business holding such property, which includes patient credits, loses contact with the owner for a certain period set by law (called the “dormancy period”), the company effectively becomes the trustee of that property, holding it for the benefit of the owner until they make a claim for its return. In Illinois, that claim may come after the owner searches the Illinois State Treasurer’s unclaimed property database . 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If it has not, the purchaser should require the seller to complete a Voluntary Disclosure Agreement prior to closing and also include a robust indemnification clause in the purchase agreement should the practice later face penalties for noncompliance. Because of the financial complexities and legal risks involved relating to unclaimed patient credits, practice buyers and sellers alike should consult with experienced counsel to help them navigate this significant and oft-neglected aspect of the practice’s finances and operations. If you are a dental professional considering a sale, acquisition, or merger, please contact us at ddslawyers.com at (630) 833-5533 or contact us online to arrange for your complimentary initial consultation. We focus a substantial part of our practice on providing exceptional legal services for dentists and dental practices, as well as orthodontists, periodontists, endodontists, pediatric dentists, and oral surgeons. We bring unique insights and deep commitment to protecting the interests of dental professionals and their practices and welcome the opportunity to work with you. Jordan Uditsky, an accomplished businessman and seasoned attorney, combines his experience as a legal counselor and successful entrepreneur to advise dentists and other business owners in the Chicago area. Jordan grew up in a dental family, with his father, grandfather, and sister each owning their own dental practices, and this blend of legal, business, and personal experience provides Jordan with unique insight into his clients’ needs, concerns, and goals.
