A bill making its way through the Ohio state Senate would limit the noncompete agreements in contracts between nonprofit hospitals and physicians, nurses and other clinicians, Cleveland.com reported May 26.
The bill is sponsored by state Sen. Terry Johnson, DO, a Republican from Portsmouth, a retired physician. The bill specifically targets restrictive noncompete with geographic limitations.
The proposal is a revival of another bill from the previous General Assembly that lost momentum after the FTC adopted a national ban on most noncompete agreements in 2024, a move that was later reversed in federal court.
Under the new bill, nonprofit hospitals could still require noncompete agreements but only within narrow limits. Any post-employment restrictions could not last longer than six months and extend no farther than 15 miles from one specifically identified address. Hospitals would be prohibited from tying the restriction to every facility in a large health system.
The bill applies only to physicians, physician assistants and advanced practice registered nurses who are employed by nonprofit hospitals, excluding executives who qualify as management employees. It also gives hospitals the freedom to prohibit covered healthcare professionals from taking shifts or side jobs with competing employers while still under contact. Affected workers can sue for damages if hospitals are found in violation of the law.
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