EDUCATION: What Does the FTC Ban of Non-Compete Agreements Mean for Healthcare Providers?

Web: www.JonesHealthLaw.com Phone: (305)877-5054 Instagram: @JonesHealthLaw Facebook: @JonesHealthLaw YouTube: @JonesHealthLaw On April 23, the Federal Trade Commission (FTC) issued a final rule, banning new non-compete agreements with all workers. It is estimated that around thirty million workers are subject to non-compete agreements, nationwide. The Commission’s final ruling states that non-compete agreements give rise to an unfair method of competition and banning non-compete agreements will result in reduced healthcare costs, new business formation, increased innovation, and higher worker earnings. The rule applies to anyone who works for a for-profit employer, despite being paid or unpaid and independent contractors. Additionally, limited use of non-compete agreements between franchises and franchisors is permitted. The rule also does not apply to non-compete agreements entered into by a person pursuant to a bona fide sale of a business entity.