Breaking down the FTC Noncompete ban, its Impact on Healthcare

On April 23, the Federal Trade Commission (FTC) announced a final rule that prohibits employers from entering into noncompete agreements with workers, including employees, independent contractors and interns. The ban on noncompetes is far-reaching, stopping nearly all types of these post-employment agreements between employers and workers across all types of industries, including healthcare.A noncompete agreement is a provision in an employment contract that prevents a former employee from working for an organization that competes with their former employer. The agreements last for a specific period, across a specific geographic area, and/or in a particular market. To maintain their competitive advantage, employers have used noncompetes to protect confidential information, such as trade secrets, specialized training and intellectual property.