The April 2024 final ruling by the Federal Trade Commission (FTC), largely banning noncompete agreements, has significant implications for all businesses, but particularly for healthcare. In a 3-2 vote, the FTC decided to ban most noncompete agreements, rendering existing ones unenforceable. This ruling, set to go into effect on September 4, 2024, covers all workers, from W2 employees to volunteers, and defines noncompete agreements broadly, including oral or written workplace policies.  

Exceptions exist, such as for senior executives and agreements made as part of a sale of business. However, its impact on healthcare, particularly concerning physicians and nonprofit hospitals, remains ambiguous.  

To gain a deeper understanding of this ruling and its implications for the business of healthcare, tune into the latest Zotec Answers podcast episode. In the episode, Ed Gaines discusses the ruling in detail, its potential exceptions, and how it relates specifically to healthcare. Listen now to stay informed about these important changes in employment regulations within the healthcare industry.