There has been considerable attention to noncompete clauses since the Federal Trade Commission published its final rule to ban most of them. The final rule was not drafted specifically for physicians, but it will impact physicians if the final rule is not delayed or rescinded by the federal courts.
As of the date of writing this article, there are several lawsuits which have been filed to stop the adoption of the final rule. The Federal Trade Commission ban is scheduled take effect on September 4, 2024.
What does the final rule state?
The final rule rescinds existing noncompetes for most workers who are not “senior executives.” Additionally, if it takes effect, it bans noncompete clauses from being signed on or after the effective date for all employees, including senior executives, in businesses under FTC jurisdiction.
