The Federal Trade Commission’s approval this week of a final rule voiding and banning nearly all non-compete clauses raises several unanswered questions which are of particular interest to healthcare industry entities. These include whether the FTC will try to enforce the rule against tax-exempt entities, whether healthcare employers will be hesitant to enforce non-compete clauses
Non-Compete Agreements
Physician Restrictive Covenants: FTC Targets Non-Compete Clauses as Unfair Method of Competition
On January 5, 2023, the Federal Trade Commission (FTC) published a notice of proposed rulemaking (NPR) for a non-compete clause rule. The NPR, if approved as published, would ban as an unfair method of competition all non-compete clauses between an employer and workers in all industry sectors throughout the country. The NPR might also extend…
FTC Proposes Ban on Non-Compete Agreements
On January 5, the Federal Trade Commission (FTC) issued an extremely broad Notice of Proposed Rulemaking which, if adopted in its current form, would prohibit nearly all private employers from entering into or enforcing non-compete agreements with their employees. In this Client Alert, our partner Thomas C. Senter outlines key provisions of the proposed…
A3715: New Jersey Legislature Again Considers Limiting Reach of Restrictive Covenants
Restrictive covenants are commonplace in the healthcare space. Doctors and hospitals routinely enter into non-compete and non-solicitation agreements in an effort to retain talent, among other reasons. However, in May of 2022 the New Jersey Assembly proposed legislation that may serve to significantly limit the scope of restrictive covenants, both within the healthcare space and…