What the FTC’s New Protections From Non-Compete Agreements Mean in a Mostly Non-Profit Hospital Industry

The Federal Trade Commission (FTC) approved a rule in April 2024 barring the use of non-compete agreements in certain employment contracts. However, the regulation, which is set to take effect in September 2024, does not apply to non-profit hospitals, leaving many health care workers unprotected. This could affect wage rates, as non-compete clauses can prevent employees from obtaining higher-paying jobs elsewhere. The new rule faces multiple legal challenges, with plaintiffs claiming the FTC exceeded its regulatory authority.