The new FTC Rule for Non-competes

At the end of April, the FTC (Federal Trade Commission) banned non-compete agreements for a vast majority of industries within the United Sates. This change will take place in 120 days if not challenged in a federal court.

This is HUGE.

Think of non-competes like keeping your dog on a leash - they could theoretically get out but it would take a lot of work and chance. The ban of non-compete clauses is expected to expand new businesses by 2.7% each year, expected close to 30,000 new patents in 10 years, and for my healthcare girlies out there lower healthcare costs by $194 billion over the next decade.

So what does this mean for healthcare professionals?

The caveat to all of this is that FTC “technically” does not have regulation over non-profit institutions (read: every academic hospital). However, the ruling is ambiguous at best and the FTC commissioner has stated she reserves the right to enforce the noncompete ban on nonprofits that behave like for profit organizations.

so the TLDR - you’ll be seeing more about this in the coming months. In the meantime, read those contracts closely and NEGOTIATE.