July 17, 2024
ALEX KACIK
Health systems are rethinking their use of noncompete agreements despite a Texas court ruling that may doom the Federal Trade Commission’s ban on those employment contract provisions.
Companies are girding for more litigation, regulation and legislation seeking to limit noncompetes, even if the FTC’s effort to eliminate those agreements falls short, attorneys said. Many healthcare employers are turning to nondisclosure and nonsolicitation provisions in place of noncompete clauses that restrict employees from working for a rival organization. If employers are still using noncompetes, physicians and other healthcare workers are increasingly pushing back, employment lawyers said.
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