FTC Proposes Regulation to Ban Non-Compete Clauses in All Employment Contracts, Including Health Care
The Federal Trade Commission (FTC) has proposed a regulation FTC Proposes Rule to Ban Noncompete Clauses, Which Hurt Workers and Harm Competition | Federal Trade Commission that would prohibit the use of non-compete clauses in all employment contracts, including health care. The FTC is seeking public comment on the proposed rule, which according to the FTC press release “is based on a preliminary finding that noncompete clauses constitute an unfair method of competition and therefore violate Section 5 of the Federal Trade Commission Act.” Please remain alert for further information regarding this proposal.
MSSNY currently has policy that calls for the prohibition of non-compete clauses “in a health system-physician employment contract or in a contract between a Management Services Organization (MSO) and a physician that limits the ability of such physician to deliver care in the same region after the physician leaves employment from such health system or leaves the medical practice that utilizes that MSO.” However, the policy is silent as to other non-compete clauses used in health care employment arrangements.
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