Amid growing concerns over the use of noncompete agreements in healthcare, lawmakers in multiple states are taking action to restrict or prohibit these clauses for healthcare professionals. This trend is seen as a response to challenges posed by the Federal Trade Commission’s (FTC) efforts to ban noncompete provisions nationwide.
Recently, the FTC announced a final rule on April 23 that would prohibit such clauses from preventing workers from changing jobs within an industry. However, legal challenges have already begun, and it remains unclear whether the FTC’s efforts will ultimately be successful.
In response to this development, Maryland Governor Wes Moore signed bipartisan legislation (HB 1388) into law just two days later, becoming one of the first states to take action against noncompete agreements in healthcare. This move represents a growing trend among states that seek to protect healthcare workers’ rights and promote competition in the industry.
By limiting the use of noncompete agreements for healthcare professionals, these states are working to create a more equitable and flexible environment for workers to thrive and advance in their careers. Ultimately, this benefits patients by ensuring access to a diverse and skilled workforce who can provide high-quality care without being restricted by noncompete clauses.