UPDATE - The FTC proposed to ban noncompete agreements. The ban would have applied to for-profit entities but not to nonprofit health care organizations, potentially creating a disparity between physician practices and hospital systems.
However, a federal court blocked this proposal, rendering it ineffective. As a result, the regulation of noncompete agreements now falls back to state laws, which vary significantly across the U.S.
Reuters - "US judge strikes down Biden administration ban on worker 'noncompete' agreements" provides details on the court's decision, with specific mention of Judge Ada Brown's ruling that the FTC lacked the authority to impose such a sweeping ban. This article also notes the implications for both employers and workers, returning the issue to state-level regulation.
THE 2024 STORY
FTC’s Final Rule Banning Worker Noncompete Clauses: What It Means for Employers.
The Federal Trade Commission (FTC) recently issued a final rule that bans non-compete clauses, marking a significant change for many workers, including those in the orthopedics sector. This new regulation is set to impact approximately 30 million employees across the United States and will tak...
