Overview

• On September 10, FTC Chairman Andrew N. Ferguson sent warning letters to large healthcare employers and staffing firms urging comprehensive reviews of noncompete and other restrictive covenants.
• The letters warn that overbroad restrictions can limit clinician mobility and reduce patient choice, with particular concern for rural areas where access to care is already constrained.
• On September 5, the FTC voted 3–1 to dismiss its appeals and accept the court’s vacatur of its 2024 rule, formally abandoning a nationwide noncompete ban.
• A day earlier, the FTC filed a complaint and proposed consent order against Gateway Services that would halt enforcement of blanket noncompetes covering nearly 1,800 workers.
• The Commission launched a public Request for Information to guide further actions and notes its remedies include cease-and-desist orders without damages, while state law continues to govern enforceability and many nonprofits fall outside FTC jurisdiction.