By Greg Care

I’ve written a lot recently about the Federal Trade Commission’s (FTC) erstwhile effort to ban virtually all non-competition clauses via a regulation promulgated under the Biden Administration, and the FTC’s about face on that issue under the Trump Administration. While the non-compete regulation is now, effectively, a dead letter, the FTC says it still intends to pursue enforcement actions regarding unlawful non-competes, especially in the healthcare sector.

On September 10, just days after saying that it was abandoning the non-compete regulation, the FTC announced that it had sent letters to “several large healthcare employers and staffing firms urging them to conduct a comprehensive review of their employment agreements—including any noncompetes or other restrictive agreements—to ensure they are appropriately tailored and comply with the law.” The agency’s press release did not specify which employers or firms received the letters. It also notes that receipt of the letter does not mean the recipient is suspected of engaging in illegal conduct. It is unclear how the FTC decided to which entities to direct its letter.

Concurrently, the FTC has asked for public comments “to better understand the scope, prevalence, and effects of employer noncompete agreements, as well as to gather information to inform possible future enforcement actions.” Comments can be submitted until November 3, 2025, at 11:59pm ET. While I think the FTC has already received a bevy of this information during the rulemaking process for the non-compete regulation, it may still be helpful for doctors, nurses, nurse practitioners, and other healthcare professionals to share their concerns.

The FTC’s decision to forsake the non-compete regulation was an unfortunate one. I remain skeptical that individual enforcements will stamp out the pervasive ills of non-competes. But, we will monitor for developments on this proclaimed area of focus in the healthcare sector to see what, if anything, happens to address at least one area of concern to many whom I represent. Stay tuned for more.

If you have questions regarding non-competes in your situation, please contact us today to see if we can assist with your particular circumstances.

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