In an article published on January 13, 2025, by Healio, Brian Markovitz and Mathew Seeburger explain the timeline of the Federal Trade Commission’s noncompete ban as well as its future under the Trump administration.
Markovitz and Seeburger explain that the ban is likely to be revoked moving forward due to the free-market business approach the FTC is expected to follow, including rejecting regulation.
Without a federal ban, they write, regulation of noncompete agreements will be up to state and local governments. Currently, only four states fully prohibit these agreements, whereas 33 states and the District of Columbia impose restrictions. As states create new laws and regulations fall into various categories, it will be important for all employees and contractors to know the requirements in their specific jurisdictions.
Whether the national noncompete ban falls through as expected or it lives, there will be significant implications for the healthcare industry, Markovitz and Seeburger conclude.
“To ensure compliance,” they explain, “both employers and employees should carefully review state and local requirements and consult local legal counsel if necessary.”
Read the article “Trump administration will likely kill the FTC’s controversial noncompete rule.” (PDF)
