Beyond Antitrust: State Legislation Aims to Protect Healthcare Workers from Noncompete Agreements

In recent years, lawmakers across the country have been working to pass legislation that would restrict or completely prohibit noncompete agreements for specific healthcare professionals. This move comes as concerns arise about the legality of a nationwide ban on noncompete clauses introduced by the Federal Trade Commission (FTC) in April 2021.

Under the new rule, which took effect on April 23, noncompete provisions that prevent workers from changing jobs within their industry would be prohibited. However, this move by the Biden administration has quickly faced legal challenges and uncertainty about its enforceability.

Despite these challenges, some states are taking action to protect the rights of healthcare professionals to freely pursue job opportunities without undue restrictions. For example, just two days after the FTC announced its rule, Maryland Governor Wes Moore signed a bipartisan bill (HB 1388) into law specifically banning noncompete agreements for healthcare professionals in Maryland.

This legislation is part of a growing trend among some states to address concerns surrounding noncompete clauses for healthcare workers. The pushback against these agreements reflects a broader discussion on labor practices and employment agreements in the healthcare industry and highlights the need for greater transparency and fairness in these types of arrangements.

Moving forward, it will be important to monitor how these legislative changes impact healthcare professionals and the overall healthcare workforce. As such, it’s crucial to continue discussions around labor practices and employment agreements in order to ensure that workers are able to pursue job opportunities without undue restrictions or penalties.