- The Federal Trade Commission voted to withdraw its defense of the Biden administration’s rule banning most noncompete agreements.
- The FTC seeks input from stakeholders affected by unreasonable noncompete agreements.
- Congress has introduced legislation to ban noncompete agreements nationwide.
- The bill's future continues to be an STS advocacy priority.
Last week, the Federal Trade Commission (FTC) voted to vacate its defense of the Biden administration’s rule banning most noncompete agreements. STS supported this rule because nearly 80% of cardiothoracic surgeons are hospital employees bound by noncompete agreements. These agreements frequently impose restrictions that can hinder workforce mobility, disrupt continuity of care, and contribute to physician burnout.
While the FTC has ultimately decided to drop its defense of the ban, it is currently calling for input from stakeholders who may be subject to an unreasonable noncompete agreement. If any STS member wishes to submit their case to the FTC, the public request is now open.
Additionally, Congress has introduced federal legislation that would ban the use of noncompete agreements in all settings, including nonprofit hospitals, where many STS members work. While the future of this bill is still uncertain due to the FTC guidance, it remains an STS advocacy priority and will be at the forefront of our discussions with Congress. Importantly, even without the FTC rule or federal legislation, state laws governing noncompete agreements will still be in effect, meaning restrictions will vary depending on where physicians practice.