Several states are enacting legislation to limit or ban noncompete agreements for certain healthcare professionals. This trend comes as concerns arise about the Federal Trade Commission’s (FTC) nationwide ban on noncompete clauses, which may face legal challenges. On April 23, the FTC introduced a final rule that would prevent noncompete provisions that restrict workers from switching jobs within their industry. The Biden administration’s move has already faced legal challenges two days after its announcement.
In response to these concerns, Maryland Governor Wes Moore signed a bipartisan bill (HB 1388) into law on April 26th, specifically banning noncompete agreements for healthcare professionals in the state of Maryland. This move reflects a growing trend among some states to address issues surrounding noncompete clauses for healthcare workers.
The pushback against noncompete clauses is part of a broader discussion on labor practices and employment agreements in the healthcare industry. As these legislative changes take effect, it will be important to monitor how they impact healthcare professionals and the overall healthcare workforce.
