FTC could ban noncompetes with new rule: What ASCs need to know

Noncompete agreements could be banned with a new proposed rule from the Federal Trade Commission. 

Here are five things ASCs need to know:

1. The rule, which would block companies from limiting their workers' ability to work for competitors, could lift wages by nearly $300 billion per year, according to The New York Times

2. These rules are often applied to physicians but could suppress pay or directly affect 20 to 45 percent of private sector workers, according to the Times.  

3. The rule would force companies to discontinue existing noncompete agreements and inform employees they no longer apply. It would also be illegal to falsely suggest an employee is bound by one. 

 4. These covenants limit a person's ability to get a new job with a competitor through restrictions on geography, time or line of business. Currently about half of states strictly limit these agreements, but companies often still use them despite the fact they are largely unenforceable. 

5. The proposal will be open 60 days for public comments, and the FTC will then move to make it final.

Copyright © 2023 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Webinars

Featured Whitepapers

Featured Podcast