The Federal Trade Commission’s approval this week of a final rule voiding and banning nearly all non-compete clauses raises several unanswered questions which are of particular interest to healthcare industry entities. These include whether the FTC will try to enforce the rule against tax-exempt entities, whether healthcare employers will be hesitant to enforce non-compete clauses against employed physicians should the rule survive legal challenges, and whether existing agreements with C-suite and other senior hospital and health system executives containing non-compete clauses, (which are outside the scope of the FTC’s rule) will become subject to the rule if they are amended, and should the rule become effective. Learn more about the FTC’s final rule and its potential impacts in our just-published client alert from Greenbaum partner Thomas C. Senter.
FTC Issues Final Rule Banning Non-Compete Clauses: Questions for the Healthcare Industry
