decisionhealth Newsletters, Part B News - 2024 Issue 9 (September)
Non-compete rule blocked; watch other forces on restrictive covenants
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Article Overview
This compliance-focused article reviews the status of the FTC’s noncompete rule after a federal court injunction and nationwide block, then discusses the broader legal landscape that still affects restrictive covenants in health care contracts. It is relevant to physician practices, health care employers, compliance teams, and attorneys who manage employment agreements, patient solicitation issues, and state-by-state covenant restrictions. The article summarizes court activity, possible next steps for the rule, and practical considerations tied to state law and common-law enforceability standards.
Why This Topic Matters
Even without an immediate federal ban, restrictive covenants remain subject to changing court decisions, state legislation, and common-law limits. Health care organizations need to understand these overlapping rules when drafting or enforcing employment agreements.
Article Sections
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Compliance
Introduces the FTC rule, the court action that halted it, and the legal context surrounding restrictive covenants in health care contracts.
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Some hope, not much
Summarizes possible future paths for the rule, including appeals, conflicting court outcomes, and other legal avenues that could affect the issue.
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Don’t get cocky
Reviews continuing state-law and common-law considerations that can still limit or shape restrictive covenants in physician and health care agreements.
What You Will Learn
- How the blocked FTC noncompete rule fits into the current compliance environment
- Why state laws and common-law standards still matter for restrictive covenants
- What kinds of legal developments could affect the rule going forward
- How health care employers may think about agreement language and enforceability at a high level
Who Should Read This
- Physician practice administrators
- Health care compliance professionals
- Health care attorneys
- Employment counsel
- Medical group management
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