Four Implicit Messages to Healthcare in the FTC Non-Compete Rule - Paul Keckley
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Summary
The Federal Trade Commission (FTC) has passed a new rule that prohibits employers from using non-compete agreements with workers, except for a narrower application to top executives. This FTC final rule is part of a broader scrutiny of non-competes which research shows tend to impede market competition, suppress worker earnings, and hinder business innovation. Predictably, the rule has generated significant backlash, particularly from healthcare organizations, leading to lawsuits and contention about the FTC’s authority. With staggered enforcement dates for existing and new agreements, the rule reflects an intent to increase labor market fluidity and decrease healthcare costs, aligning with empirical research promoting economic efficiency and competition. However, its immediate future is clouded by legal challenges and dissenting views from within various industry sectors, especially healthcare, as debates about its broader implications continue to unfold.
