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FTC Escalates Case-by-Case Crackdown on Health Care Noncompetes

Warning letters urge employers to reassess restrictive covenants, with notice to workers for any invalid terms.

Overview

  • On Sept. 10, FTC Chair Andrew Ferguson sent letters to several large health care employers and staffing firms, publishing a template but not naming recipients.
  • The agency highlighted concerns over excessive duration, broad geographic scope, and use for nonexecutive roles, citing risks to worker mobility and patient access in rural areas and noting potential market-power factors.
  • An FTC Request for Information seeks detailed submissions on the scope and effects of employer noncompetes, with responses due by Nov. 3.
  • A public workshop on noncompetes is scheduled for Oct. 8 to gather input and outline enforcement priorities.
  • In a related enforcement action, the FTC ordered Gateway Services, the nation’s largest pet cremation company, to stop enforcing unlawful noncompete agreements.