Call or text (855) 420-1626 | Need support? Click here.

To opt-out of texting, simply reply STOP at anytime.

Infinity Medical Marketing logo

What the New FTC Ban on Non-Compete Agreements Means for Medical Providers

June 11, 2024

On April 23, 2024, the U.S. Federal Trade Commission (FTC) took a significant step by voting to ban non-compete agreements between employers and workers in the United States, with some exceptions. The final rule was published in the Federal Register on May 7, 2024, and will come into effect on September 4, 2024. This landmark decision has wide-reaching implications for many industries, including healthcare. Here’s what you, as a medical provider, need to know about your rights under this new rule.

Understanding the Ban

Non-compete agreements have long been used to prevent employees from joining competing practices or starting their own within a certain geographic area and timeframe after leaving their employer. The FTC's new rule considers these agreements to be "unfair methods of competition" and requires employers to cease enforcing most existing non-compete agreements. The goal is to enhance labor market competition and employee mobility.


Key Aspects of the FTC Rule


  1. Broad Ban with Exceptions: The ban applies broadly to most non-compete agreements. However, certain exceptions may apply, such as non-competes connected to the sale of a business or to senior executives.
  2. Cessation of Enforcement: Employers are required to stop enforcing most existing non-compete agreements. This means that, come September 4, 2024, many medical providers will find themselves free from these restrictive covenants.
  3. Notice Requirements: Employers will need to notify employees that their non-compete agreements are no longer in effect. This includes current employees and those who left while bound by such agreements.


What This Means for You as a Medical Provider


  1. Increased Freedom to Change Jobs: If you are currently under a non-compete agreement, this new rule significantly changes your situation. Starting September 4, 2024, you will likely be free to move to a new practice or start your own without the legal constraints previously imposed by your non-compete clause.
  2. Opportunity to Start Your Own Practice: For many medical providers, non-compete agreements have been a barrier to starting their own practice. With the new rule, you can consider opening your own practice without the fear of legal repercussions from a former employer.
  3. Ability to Negotiate Better Terms: The absence of non-compete agreements can empower you to negotiate better terms when joining a new practice. Knowing that you have the freedom to leave if necessary can give you leverage to secure more favorable employment conditions.
  4. Re-entering the Workforce: If you left a practice due to a non-compete agreement, you now have the opportunity to re-enter the workforce in your desired location or specialty without the restrictions that previously applied.


Action Steps for Medical Providers


  1. Review Your Employment Contract: If you are currently bound by a non-compete agreement, review your contract and understand how the new FTC rule impacts your specific situation.
  2. Seek Legal Advice: Consult with a legal professional who specializes in employment law to get a clear understanding of your rights and how to proceed. They can provide guidance tailored to your individual circumstances.
  3. Plan Your Next Steps: Whether you are considering a job change, starting your own practice, or re-entering the workforce, now is the time to start planning. Assess your options and prepare for the transition once the rule takes effect.
  4. Stay Informed: Keep updated with any further guidance or adjustments to the rule from the FTC. Understanding the latest developments will help you make informed decisions about your career.


You can read more about this rule directly from the FTC's website here: FTC Announces Rule Banning Noncompetes.


For further details on the implications and guidance related to this rule, refer to the FTC's official Noncompete Rule page.


This information should help you understand the scope of the new rule and how it affects medical providers. Remember, nothing in this blog constitutes legal advice. We strongly encourage you to seek the advice of an attorney on all matters related to non-compete agreements to ensure you fully understand your rights and obligations under the new FTC rule.

Picture of man holding AI Generative icon in his hand
February 15, 2025
Learn how AI is changing medical search results and why your practice needs a holistic approach combining SEO, GEO, and paid advertising to stay competitive.
Person using Google Search
February 10, 2025
Discover why SEO is essential for medical practices as AI-generated search results evolve. Learn how optimizing content can improve visibility, build trust, and attract more patients.
Person harnessing the power of AI to market their medical practice
January 25, 2025
Discover how businesses can leverage AI tools to streamline content creation for websites, social media, and more. Explore tools for text-to-video, text-to-image, blogging, and automation to save time and boost engagement.
Urgent Care Center Doctor caring for pediatric patient
January 15, 2025
Explore practical and community-focused marketing strategies for urgent care centers. Learn how to attract more patients with proven ideas and expert tips.
Marketing team strategizing about how to acquire patients for a medical practice.
January 15, 2025
Learn how to choose the right marketing agency for your medical practice. Discover key factors like expertise, regulations, and experience to grow your practice and attract more patients.
Physician showing happiness rating
November 4, 2024
Learn about the FTC’s new rules on online reviews, including guidelines for healthcare practices. Ensure compliance and build patient trust with genuine feedback.
A person is holding a tablet with a calendar on it.
By Infinity SEO Experts October 9, 2024
Learn how to use Google Ads to fill last-minute appointment slots with location targeting, time-sensitive ads, and easy appointment scheduling. Contact Infinity Medical Marketing to get started.
A woman is getting a mammogram in a hospital.
October 4, 2024
Learn how to promote essential healthcare services that patients shouldn’t delay. Discover strategies for educating patients, offering time-sensitive promotions, and more with Infinity Medical Marketing.
A person is typing on a laptop computer with envelope icons coming out of the screen.
October 4, 2024
Re-engage dormant patients with personalized email marketing. Learn how to remind patients about expiring benefits, offer promotions, and fill your calendar before the year ends with Infinity Medical Marketing.
A woman is holding a cell phone in her hand and smiling.
October 1, 2024
Discover how online scheduling can benefit healthcare practices by improving patient satisfaction, reducing administrative burden, and increasing efficiency. Learn more with Infinity Medical Marketing.
More Posts
We use cookies to ensure that we give you the best experience on our website. To learn more, go to the Privacy Page.
×
Share by: