Source Article – FTC drops appeals of noncompete ban

On September 5, the FTC dropped the appeals on the noncompete ban ruling originally proposed January 5, 2023. The original ruling argued that noncompete agreements were unfair methods of competition.  The FTC will continue to enforce individual actions for unfair agreements but their overarching enforcement of the ban for all of these agreements will not proceed. Estimates indicate that over 30 million contracts would’ve been essentially null and void if this ruling was upheld.

According to UCA’s 2022 Compensation Benchmarking Report, 60% of survey participants reported including noncompete clauses in their employee agreements. Among those, 75% also restricted employees from engaging in competitive activities within a specific geographic radius of the employer’s business. (see chart below) 

In the current environment where staffing shortages remain critical how does this impact Urgent Care clinicians and employers? 

• Do noncompete agreements complicate recruitment efforts for employers? 
• Do they unjustly limit clinician’s flexibility and income potential? 
• Do they reduce turnover and safeguard the investments that employers have made in onboarding and training clinicians? 

I can see both sides of the coin in this situation.  I wouldn’t want to be restricted from seeking a new opportunity, especially if I was in a situation where I was unhappy, but as an employer would be frustrated to see my efforts to train a clinician be thwarted by having them go to a competitor for a slightly better offer.

How do you feel about noncompete agreements within Urgent Care?