What the FTC’s New Protections From Non-Compete Agreements Mean in a Mostly Non-Profit Hospital Industry Michelle Long, Matthew Rae, and Kaye Pestaina Published: Jul 24, 2024What the FTC’s New Protections From Non-Compete Agreements Mean in a Mostly Non-Profit Hospital Industry Michelle Long, Matthew Rae, and Kaye Pestaina Published: Jul 24, 2024

https://www.kff.org/policy-watch/what-the-ftcs-new-protections-from-non-compete-agreements-mean-in-a-mostly-non-profit-hospital-industry/?utm_campaign=KFF-This-Week&utm_medium=email&_hsenc=p2ANqtz--dHzn4v8SeOYk0CSKeCl_uKvIk7BjNIbuMG3IXvIcDmijju2sZlOHKG4ZaiOmVG30MioNxeuxOLpqzrlMD3XVZK2ZCCg&_hsmi=317468616&utm_content=317468616&utm_source=hs_email In April 2024, the Federal Trade Commission (FTC) approved a final rule barring employers’ use of non-compete clauses in certain employment contracts. Non-compete clauses are used in many industries to prevent employees from taking a job with a competitor or starting a related business within a certain amount of time or distance. The FTC estimates that one in five workers (about 30 million) are subject to a non-compete clause. The regulation, which is set to take effect in September 2024, already faces multiple legal challenges, and possibly more to come, with plaintiffs claiming that the FTC exceeded its regulatory authority. Plaintiffs in of those cases were granted a preliminary injunction in July 2024, enjoining the FTC from enforcing the rule against them while the case makes its way through the courts.