HealthExec April 24, 2024
The Federal Trade Commission (FTC) voted 3-2 to ban noncompete contracts that limit workers’ options. Advocacy groups in healthcare are already celebrating, but it isn’t clear how the new rule will impact employees of healthcare entities, especially hospitals and health systems.
Noncompete clauses in employee contracts are common in every industry—including healthcare, where persistent labor shortages mean companies will fight to enforce contracts. As an example, ThedaCare gained national media coverage in 2022 when the company successfully filed a restraining order to stop seven clinicians from taking new jobs elsewhere. A judge later threw out that order, and it isn’t clear what the specifics of the employees’ contracts were. However, the case is notable because it illustrates how employers...
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