FTC Votes To Ban Most Non-Competes
The Federal Trade Commission (FTC) bans most non-competes. The final rule would ban such agreements for anyone that is not both a senior executive (in a “policy-making position”) and earning more than $151,164 annually. These positions represent less than 0.75% of the workforce. The FTC does not have cognizance over non-profits.
The rule is expected to be challenged in court, but seems to be a reasonable proposal. Non-competes are used extensively in healthcare, even for doctors who do not meet the policy-making provision. This impacts up to 40% of doctors.
A non-compete would remain for senior positions, which does not seem unreasonable. Surprisingly, provider lobbies are against a ban, largely because they are now influenced by private equity owners, who seek to freeze out doctors from taking other jobs. Many entities promise to sue.
Additional articles: https://www.fiercehealthcare.com/regulatory/ftc-votes-3-2-issue-final-rule-banning-noncompetes and https://www.modernhealthcare.com/providers/ftc-noncompete-ban-agreement-lina-khan and https://www.healthcaredive.com/news/ftc-noncompete-ban-healthcare-doctor-effects/713846/
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#ftc #noncompetes #healthcare
https://thehill.com/business/4615452-ftc-votes-to-ban-non-compete-agreements/
