When Wellness Practitioners Leave: Navigating Legal and Ethical Transitions Across the Wellness Industry

The Scenario Every Wellness Employer Dreads

Dr. Sarah, a licensed psychologist at a mental health clinic, suddenly schedules herself for 40 new client intakes over six weeks—triple her normal rate. Two weeks later, she submits her resignation and announces she's opening her own practice across town. Within months, dozens of "her" clients have followed her to the new location.

Sound familiar? This scenario plays out regularly across the wellness industry, from chiropractic offices to massage therapy clinics, from nutrition practices to yoga studios. The pattern is consistent: a trusted practitioner loads up on clients or customers, then departs to become direct competition, taking your client base with them.

The financial impact can be devastating for wellness employers, but the legal and ethical issues are complex. When does normal career transition cross the line into misconduct? What can employers do to protect their business interests? And what obligations do departing practitioners owe to their employers?

Why This Matters in the Wellness Industry

Wellness services share unique characteristics that make practitioner departures particularly challenging:

Personal relationships are the foundation. Unlike retail or manufacturing, wellness services depend on trust and personal connection. Clients often feel loyalty to individual practitioners rather than the business itself. A massage therapist's clients may see themselves as "Maria's clients," not "the clinic's clients."

Small business vulnerability. Many wellness businesses operate on thin margins with small teams. Losing one chiropractor from a three-person practice can mean losing 30% of revenue overnight.

Professional licensure creates leverage. Licensed practitioners (psychologists, physical therapists, chiropractors) have portable credentials and can immediately compete. A departing massage therapist can hang a shingle within days.

Information asymmetry. Practitioners know which clients are most loyal, most profitable, and most likely to follow them. Employers often don't realize the exodus is coming until it's too late.

Emotional investment. Many wellness employers started their businesses with idealistic goals of healing and helping others. Feeling "betrayed" by a departing practitioner can cloud judgment about appropriate legal responses.

The Legal Foundation: Duty of Loyalty

Here's what every wellness employer needs to understand: Employees owe their employer a duty of loyalty while employed. This is a foundational principle of employment law that applies across all industries, including wellness.

What the Duty of Loyalty Means

The duty of loyalty requires that employees:

• Act in the employer's best interest during working hours and when using employer resources
• Not compete with the employer while still employed
• Not usurp business opportunities that belong to the employer
• Not use confidential information to benefit themselves or harm the employer
• Not solicit the employer's clients or employees while still on the payroll

This duty exists even without a written contract. It's an implied obligation in every employment relationship.

When Practitioners Breach Their Duty of Loyalty

Consider these real-world examples from across the wellness industry:

Example 1: The Overloading Psychologist

Dr. Martinez, employed by a mental health clinic, schedules 35 new client intakes in her final month of employment—compared to her usual 8-10 per month. She has already signed a lease for her own practice but hasn't disclosed this to her employer. She provides minimal treatment to these new clients, knowing she'll invite them to follow her after she leaves.

Breach: Dr. Martinez is using her employer's resources (office space, administrative support, marketing, reputation) to build her own client base. She's taking business opportunities that belong to the clinic. The new clients are the clinic's clients, not hers personally.

Example 2: The Departing Chiropractor

Dr. Chen, a chiropractor in a group practice, decides to open his own office. Before giving notice, he downloads the clinic's patient database, including contact information and treatment histories. He uses this information to send announcement cards to "his" patients about his new location.

Breach: Dr. Chen has misappropriated trade secrets (the patient database is confidential business information). He's also actively soliciting the clinic's patients while still employed, violating his duty of loyalty.

Example 3: The Massage Therapist Exodus

Jessica, a massage therapist at a spa, recruits two other therapists to leave with her and join her new venture. She holds these recruitment conversations during work hours and uses the spa's break room for planning meetings. She also tells her clients over several weeks that she's "going somewhere better soon" and takes their personal phone numbers.

Breach: Jessica is actively undermining her employer's business while still on the payroll. She's soliciting both employees and clients, and using employer time and resources to build her competing business.

Example 4: The Nutrition Coach Network

Alex, a nutrition coach employed by a corporate wellness company, maintains detailed spreadsheets of client progress, preferences, and contact information. When he resigns, he claims these are "his personal notes" and refuses to return them, later using the information to contact former clients about his new coaching service.

Breach: Client information created during employment belongs to the employer, not the individual practitioner. Using it for personal business gain violates both the duty of loyalty and likely trade secret law.

The Ethical Dimension: Professional Standards

Beyond legal obligations, licensed wellness practitioners are bound by professional ethical codes enforced by state licensing boards. While specific standards vary by profession, common themes include:

Client Welfare Above Self-Interest

For psychologists (APA Ethics Code): Taking on clients primarily to build your own practice, rather than for their clinical benefit, may constitute exploitation. Scheduling initial sessions knowing you'll be leaving before follow-up care violates principles of beneficence and nonmaleficence.

For chiropractors (Many state boards adopt similar standards): Creating treatment plans that extend beyond your planned departure, without disclosing your impending exit, may violate informed consent requirements.

For physical therapists (APTA Code of Ethics): Accepting new patients you cannot adequately treat through their full course of therapy, without transparency, conflicts with the obligation to provide quality care.

Conflicts of Interest

Practitioners face ethical conflicts when their financial interest in building a future practice interferes with objective professional judgment. Questions to consider:

• Are you accepting clients who would be better served by colleagues who aren't leaving?
• Are you rushing treatment or scheduling to accommodate your business timeline rather than clinical needs?
• Are you providing truly informed consent about continuity of care?

Avoiding Abandonment

Professional ethics codes across wellness professions prohibit abandoning clients. Suddenly transitioning dozens of clients mid-treatment raises serious concerns:

• Have you provided adequate notice to clients?
• Have you offered appropriate alternatives for continuing care?
• Have you completed necessary documentation and transitions?
• Are you pressuring clients to follow you rather than allowing free choice?

State Licensing Board Example: Wisconsin

Wisconsin licenses psychologists, counselors, massage therapists, chiropractors, dietitians, and many other wellness professionals through various examining boards. These boards have authority to:

• Investigate complaints about professional conduct
• Issue reprimands, probation, or license suspension
• Require ethics training or supervision
• Impose fines
• In extreme cases, revoke licenses

A wellness practitioner found to have exploited clients during a practice transition could face serious professional consequences, regardless of whether the employer pursues legal action.

Best Practices for Departing Wellness Practitioners

If you're a wellness practitioner planning to leave your employer, here's how to do it ethically and legally:

1. Understand Your Contractual Obligations

Before you do anything else, carefully review:

• Your employment contract
• Any non-compete or non-solicitation agreements you signed
• Confidentiality and trade secret provisions
• Employee handbook policies

These documents define your legal obligations. Violating them can result in injunctions, damages, and attorney fee awards against you.

2. Stop Taking New Clients Once You've Decided to Leave

The ethical approach is to stop accepting new clients (or significantly reduce intake) once you've made the decision to depart. Why?

• New clients are business opportunities that belong to your employer
• You cannot provide adequate continuity of care if you're leaving
• Taking on new clients you plan to transition to your own practice is using your employer's resources for personal gain

Practical timeline: If you plan to give 30 days' notice, stop or dramatically reduce new client intake at least 30-60 days before that notice date.

3. Provide Generous Notice

Minimum professional notice periods vary by profession, but best practices suggest:

• Mental health practitioners: 60-90 days (time for client transitions and terminations)
• Chiropractors/Physical therapists: 30-60 days (time to reassign treatment plans)
• Massage therapists/Personal trainers: 30 days minimum
• Nutrition coaches/Wellness coaches: 30 days minimum

Longer notice periods allow for:

• Proper client/patient transitions
• Hiring and training replacements
• Maintaining business continuity

4. Do Not Solicit While Employed

Active solicitation means affirmatively encouraging clients to follow you, providing your new contact information, or disparaging your current employer.

What's prohibited while employed:

• Telling clients "I'm opening my own practice—come with me"
• Distributing business cards for your new venture
• Handing out your new address or phone number
• Encouraging clients to wait for you rather than continue with colleagues
• Badmouthing your employer to justify your departure

What's generally acceptable after departure (if no non-solicitation agreement):

• Announcing your new practice publicly (social media, website, ads)
• Allowing clients who independently contact you to schedule appointments
• Responding honestly if clients ask where you've gone

5. Respect Confidential Information

Never take with you:

• Client/patient databases or contact lists
• Treatment records or notes (these belong to the employer)
• Proprietary treatment protocols or programs
• Business information (pricing, referral sources, marketing plans)
• Employee information

What you can take:

• Your own professional credentials and certifications
• General knowledge and skills developed during employment
• Your personal reputation and relationships (but see non-solicitation rules)

6. Ensure Proper Clinical Transitions

For licensed practitioners with ongoing client relationships:

• Provide sufficient notice to clients about your departure
• Offer appropriate referrals to colleagues who will remain
• Complete necessary documentation and records
• Don't abandon anyone mid-treatment
• Allow clients to make informed choices without pressure

7. Fulfill Obligations During Notice Period

Do not "check out" during your notice period. You still owe your employer:

• Full effort and attention during scheduled work hours
• Continuation of quality services to clients
• Cooperation with transition planning
• Professional behavior toward colleagues and clients

Using your notice period to slack off, bad-mouth the employer, or actively recruit clients is a breach of duty of loyalty.

Best Practices for Wellness Employers

If you're a wellness business owner, here's how to protect yourself while maintaining ethical employment practices:

1. Use Well-Drafted Employment Contracts

Essential provisions:

Non-Compete Clauses (use cautiously):

• Geographic restriction (reasonable: 5-10 mile radius for local wellness practice)
• Time limitation (reasonable: 1-2 years)
• Scope limitation (only competing services, not all healthcare)
• Must protect legitimate business interest (client relationships, trade secrets, specialized training)

Note: Non-competes are increasingly disfavored and may not be enforceable in all states or situations. Wisconsin courts enforce reasonable non-competes but scrutinize them carefully.

Non-Solicitation Clauses (more enforceable):

• Prohibit active solicitation of clients/patients for specific period (1-2 years)
• Prohibit solicitation of employees
• Define what constitutes "solicitation" vs. passive acceptance of business
• Generally more enforceable than blanket non-competes

Confidentiality and Trade Secrets:

• Define what constitutes confidential information (client lists, treatment protocols, business strategies)
• Prohibit taking or using confidential information
• Require return of all materials upon termination

Notice Requirements:

• Specify required notice period (30-90 days depending on role)
• Consequences for inadequate notice
• Expectations during notice period

Client Assignment/Ownership:

• Clarify that clients/patients acquired during employment belong to the business
• Address what happens to "practitioner's clients" upon departure
• Define transition procedures

2. Implement "Tapered Intake" Policies

Consider including contractual language that restricts new client intake during a defined pre-departure period:

"Employee agrees that upon deciding to resign or within 60 days prior to giving notice, employee will not accept new clients/patients without prior approval from management, to ensure adequate continuity of care and business transition planning."

This prevents the "loading up" scenario and is generally enforceable as a reasonable business protection measure.

3. Monitor for Warning Signs

Red flags that a practitioner may be planning departure:

• Sudden increase in new client intake
• Requests for client contact information or unusual access to databases
• Downloading files or records beyond clinical necessity
• Scheduling patterns that suggest building a future practice (stacking certain types of clients)
• Conversations with clients about future availability
• Reduced engagement in team meetings or long-term planning
• Social media activity suggesting new business plans

Appropriate employer responses:

• Have candid conversation: "Are you planning to stay long-term?"
• Review access logs to databases and systems
• Remind employee of contractual obligations
• Consult with attorney if evidence suggests preparation for competing departure

4. Structure Client Relationships as Team-Based

Reduce dependence on individual practitioners:

• Rotate clients among multiple practitioners when clinically appropriate
• Use team documentation and care coordination
• Brand the business, not individual practitioners (marketing emphasizes "ABC Wellness Center" not "Dr. Smith at ABC")
• Create multi-disciplinary teams where clients see multiple providers
• Implement intake processes where clients are assigned rather than choosing specific practitioners initially

5. Invest in Retention

Prevent departures through positive employment practices:

• Competitive compensation and benefits
• Professional development opportunities
• Reasonable autonomy and input into business decisions
• Clear paths to partnership or ownership
• Profit-sharing or performance bonuses
• Positive workplace culture

Remember: The best way to prevent problematic departures is to create an environment where talented practitioners want to stay.

6. Exit Interview and Transition Protocol

When a practitioner gives notice:

Immediate actions:

• Review employment contract together
• Clarify ongoing obligations (confidentiality, non-solicitation, etc.)
• Restrict access to unnecessary systems/databases
• Create transition plan with specific timeline

Client communication protocol:

• Employer controls messaging to clients (not departing practitioner)
• Offer clients appropriate options: continue with colleague, transition care, or receive referral
• Do not badmouth departing practitioner
• Emphasize continuity of quality care at the business

Documentation:

• Complete all client records and transitions
• Return all employer property (files, keys, technology, proprietary materials)
• Exit interview documenting fulfillment of obligations
• Final acknowledgment of ongoing duties (non-solicitation, confidentiality)

7. Secure Your Data

Protect confidential information:

• Limit database access to necessary personnel only
• Monitor and log all access to client/patient lists
• Use technology controls (prevent downloading, copying, or exporting data)
• Conduct audit of data access when practitioners resign
• Change passwords and access codes after departure

When Things Go Wrong: Legal Remedies for Employers

If a wellness practitioner has violated their duty of loyalty or contractual obligations, employers have several potential remedies:

1. Cease-and-Desist Letter

First step: Send formal letter:

• Reminding practitioner of contractual obligations (non-compete, non-solicitation, confidentiality)
• Demanding they cease prohibited conduct (stop soliciting, return confidential information)
• Warning of legal consequences if conduct continues
• Preserving your rights to pursue further action

Strategic value: Often achieves compliance without litigation. Puts practitioner on notice that you're serious.

2. Preliminary Injunction

When to seek:

• Active, ongoing solicitation of clients
• Misappropriation of confidential information
• Clear violation of enforceable non-compete
• Immediate, irreparable harm to business

Court can order:

• Stop soliciting clients
• Return confidential information
• Cease competing within restricted area/time
• Maintain status quo pending full trial

Timeline: Can be obtained within days or weeks, much faster than full litigation.

3. Damages Claims

Potential legal theories:

Breach of Contract:

• If employment contract was violated
• Damages = lost revenue from clients who left, cost of recruiting replacement, other measurable harm

Breach of Duty of Loyalty:

• Even without contract, duty exists
• Damages = unjust enrichment, lost business opportunities, lost profits

Misappropriation of Trade Secrets:

• If client lists, proprietary protocols, or confidential information was taken
• Damages = actual losses, unjust enrichment
• Potential for attorney fees if willful and malicious

Tortious Interference with Business Relationships:

• If practitioner actively interfered with client relationships
• Must show improper conduct beyond mere competition
• Damages = lost revenue, harm to business reputation

4. Professional Licensing Board Complaints

Consider filing complaint with state licensing board if:

• Clear ethics violations occurred (client exploitation, abandonment, conflicts of interest)
• Goal is professional accountability and deterrence
• Civil remedies are inadequate or unavailable

Potential board sanctions:

• Reprimand or censure
• Probation with supervision
• Mandatory ethics training
• Fines
• License suspension
• In extreme cases, license revocation

Strategic considerations:

• Board complaints are public and may harm practitioner's reputation
• You lose control over process once filed
• May complicate settlement negotiations
• Board focuses on client harm, not employer's business interests
• Best used when clear ethical violations exist, not just business disputes

5. Settlement Negotiations

Often the most practical resolution:

Typical settlement terms:

• Practitioner agrees not to solicit clients for specified period
• Returns any confidential information
• Agrees not to disparage former employer
• May include some financial compensation
• Releases all claims against each other

Benefits of settlement:

• Faster and cheaper than litigation
• You maintain some control over outcome
• Avoid publicity of legal battle
• Can include confidentiality provisions
• Preserves professional relationships in community

Industry-Specific Considerations

While general principles apply across the wellness industry, some professions face unique dynamics:

Mental Health Practitioners (Psychologists, Counselors, Therapists)

Unique factors:

• Deepest client-practitioner relationships; highest likelihood of clients following
• Strongest ethical obligations regarding abandonment and continuity of care
• Most regulated by licensing boards with robust enforcement
• Treatment often spans months or years, making mid-treatment departures most disruptive

Employer strategy: Emphasize ethics and client welfare. Use non-solicitation agreements rather than non-competes. File licensing board complaints if clear ethical violations exist.

Chiropractors

Unique factors:

• Often operate as independent contractors rather than employees (different legal analysis)
• Treatment plans may span months (re-exams every 30 days common)
• Insurance and billing complexity creates administrative ties to practice
• Professional identity often closely tied to individual practitioner

Employer strategy: Clarify employee vs. independent contractor status. Use client assignment provisions. Implement team-based care models where possible.

Massage Therapists

Unique factors:

• Lower barriers to independent practice (can work from home with minimal equipment)
• Client relationships based on personal touch and comfort
• May work as employees or independent contractors
• Lower average compensation may motivate departures to higher-earning independent work

Employer strategy: Focus on competitive compensation and workplace amenities. Non-competes may be harder to enforce (economic hardship arguments). Use non-solicitation agreements.

Physical Therapists

Unique factors:

• Treatment highly protocol-driven; easier to transition to new therapist
• Insurance and medical referrals create institutional relationships
• Equipment-intensive (harder to replicate in independent practice)
• Strong professional ethics codes and board oversight

Employer strategy: Emphasize institutional relationships with referring physicians. Use comprehensive employment contracts. Team-based care reduces individual practitioner dependence.

Fitness Instructors and Personal Trainers

Unique factors:

• Often independent contractors, not employees
• Very low barriers to independent practice (can train in parks, clients' homes)
• Social media makes it easy to maintain client relationships
• May teach at multiple studios simultaneously

Employer strategy: If possible, structure as employees to gain more control. Focus on unique studio amenities and programming clients can't replicate independently. Accept that some client migration is inevitable in this industry.

Nutrition Coaches and Dietitians

Unique factors:

• Increasingly virtual/remote work (geography matters less)
• Registered Dietitians are licensed; nutrition coaches often are not (different legal obligations)
• Corporate wellness contracts may create institutional client relationships
• Lower equipment/facility barriers to independent practice

Employer strategy: For RDs, licensing board oversight provides some protection. For nutrition coaches, contractual protections are critical. Differentiate through evidence-based programming and institutional credibility.

Preventive Strategies: Building a Sustainable Wellness Business

The best approach is preventing problematic departures before they happen:

1. Hire for Culture Fit and Long-Term Potential

During hiring:

• Assess candidate's entrepreneurial ambitions (not inherently bad, but relevant)
• Discuss long-term career goals openly
• Clarify expectations about client ownership and business development
• Be transparent about partnership or advancement opportunities

2. Create Clear Policies from Day One

New employee orientation should include:

• Written employment contract review
• Explanation of duty of loyalty
• Confidentiality and trade secret policies
• Client ownership and assignment policies
• Professional departure procedures

Make it normal, not threatening: "We want you to have a long, successful career here, and we also want to set clear expectations about how we protect our business if someone does eventually move on."

3. Invest in Institutional Brand

Reduce dependence on individual practitioners:

• Market the business brand, not individual practitioners
• Create signature programs and protocols
• Develop strong online presence and reputation
• Build referral networks that connect to the business, not individuals
• Use business name consistently in all client communications

4. Offer Ownership or Partnership Paths

Consider:

• Gradual buy-in opportunities for senior practitioners
• Profit-sharing or equity compensation
• Partnership tracks with clear milestones
• Succession planning that allows practitioners to become owners

Why it matters: Practitioners with ownership stake are less likely to leave and compete. They have incentive to build the business rather than their personal practice.

5. Maintain Competitive Compensation

Research market rates and stay current:

• Annual compensation reviews
• Performance bonuses tied to business success
• Benefits packages (health insurance, retirement, CE stipends)
• Work-life balance and scheduling flexibility

Remember: Underpaid practitioners will leave. If they're going to work hard and see clients, they want fair compensation. Losing a practitioner costs far more than paying them well.

6. Foster Professional Development

Invest in your team:

• Continuing education support
• Advanced training and specialization
• Supervision and mentorship for newer practitioners
• Conference attendance
• Professional community involvement

Benefit: Practitioners who feel invested in and professionally fulfilled are more loyal. They also deliver better services, benefiting your business reputation.

7. Regular Communication and Feedback

Don't wait for exit interviews:

• Quarterly or semi-annual check-ins about job satisfaction
• Open-door policy for concerns
• Anonymous feedback mechanisms
• Address problems before they fester

Early warning system: If a practitioner is unhappy, you want to know before they've decided to leave. You might be able to solve the problem and retain them.

Conclusion: Balance Protection with Professionalism

Wellness practitioners leaving to start their own practices is a natural part of the industry lifecycle. Ambitious, talented practitioners often dream of independence. This isn't inherently problematic—it's how entrepreneurship works.

The legal and ethical issues arise when departing practitioners breach their duty of loyalty by:

• Using their employer's resources to build a competing practice
• Taking business opportunities that belong to the employer
• Misappropriating confidential information
• Soliciting clients while still employed
• Exploiting clients for financial gain
• Abandoning professional responsibilities

For wellness employers: Protect yourself with solid contracts, clear policies, and appropriate business practices. But also recognize that the best protection is creating a workplace where talented practitioners want to stay. Focus on retention as much as enforcement.

For wellness practitioners: You have the right to pursue your career goals, including independent practice. But you also have legal and ethical obligations to your current employer and your clients. Do it right: give generous notice, stop taking new clients once you've decided to leave, respect confidentiality, avoid solicitation while employed, and ensure your clients receive quality care throughout the transition.

When disputes arise: Seek early legal advice, document everything, attempt good-faith resolution, and remember that litigation is expensive and unpredictable for both sides. Often, a negotiated settlement serves everyone better than a protracted legal battle.

The wellness industry thrives when practitioners and employers maintain high ethical standards, respect each other's interests, and prioritize client welfare above all else.

About the Author

Barbara Zabawa, JD, MPH, is a law professor and legal consultant specializing in wellness law, employment law, and healthcare regulation. She advises wellness businesses and practitioners on employment matters, regulatory compliance, and business transitions. Barbara is licensed to practice law in Wisconsin and New York. Learn more about Wellness Law, LLC at www.wellnesslaw.com.

Disclaimer

This article provides general information about legal and ethical issues in wellness practice transitions. It is not legal advice and does not create an attorney-client relationship. Laws vary by state and situation. Wellness employers and practitioners should consult with qualified attorneys in their jurisdiction for advice about specific situations.