April 25, 2024- On April 23, The Federal Trade Commission voted 3-2 to issue a final rule, the Non-Compete Clause Rule, and if it goes into effect, it will ban noncompete contracts. In response, The American Academy of Family Physicians (AAFP) stated that they are “pleased to see the Federal Trade Commission (FTC) take concrete action to ban noncompete clauses in employee contracts.” They also stated support for the final rule, saying “We are encouraged to see that the FTC intends for this ban to extend to many nonprofit entities. Nonprofit health systems often have significant financial assets and employ a large portion of physicians and clinicians. They should not be permitted to continue to restrict patient access and physician choice in employment.”
However, The American Hospital Association (AHA) urged the agency to withdraw the proposed legislation or exempt the hospital field. Chad Golder, AHA general counsel and secretary stated, “For all of the reasons the AHA explained in its comment letter, the FTC’s final rule banning non-compete agreements for all employees across all sectors of the economy is bad law, bad policy, and a clear sign of an agency run amok.”
Learn More about the FTC Final Rule
Learn More about the AAFP Statement
Learn More about the AHA statement