This week, we examine the Federal Trade Commission’s (FTC’s) decisions to drop its appeal of a federal court ruling striking down its proposed non-compete ban and to issue warnings to health care employers about using unreasonable restrictive covenants in employment agreements.

FTC Backs Off Non-Compete Ban, Warns Health Care Employers

Although the FTC’s decision to abandon its non-compete ban appeal may appear to favor employers, its recent warning letters to health care organizations make clear that regulatory scrutiny is far from over.

Key Takeaways for Employers:

• Regulatory Spotlight on Health Care: The FTC has urged health care employers to review restrictive covenants for fairness and compliance.
• Patient Choice Concerns: Health care non-competes may limit patient access to providers, particularly in rural areas.
• Protection of Business Interests: Non-competes should be narrowly tailored to safeguard trade secrets, customer relationships, and other legitimate interests.

In this episode, Epstein Becker Green attorneys E. John Steren and David J. Clark discuss the FTC’s concerns for health care employers, offer guidance on revising non-compete agreements to withstand legal challenges, and explore alternative strategies to protect business interests.