In recent years, lawmakers in several states have taken action to restrict or prohibit noncompete agreements for healthcare professionals. This trend comes in response to concerns that the Federal Trade Commission’s (FTC) efforts to ban these clauses nationwide may face challenges. On April 23, the FTC announced a final rule that would prohibit noncompete provisions preventing workers from changing jobs within an industry. However, legal challenges have already begun.
Maryland Governor Wes Moore signed bipartisan legislation (HB 1388) into law just two days after the FTC’s announcement, banning noncompete agreements for healthcare professionals in the state. This move is part of a growing trend among states to curb the use of noncompete agreements in healthcare, which can restrict professionals from seeking better job opportunities or hindering their ability to provide care in underserved communities.
These legislative actions aim to protect healthcare workers’ rights and promote competition in the industry, ultimately benefiting patients by ensuring access to a diverse and skilled workforce. By limiting the use of noncompete agreements for healthcare professionals, states are working to create a more equitable and flexible environment for workers to thrive and advance in their careers.
