The Federal Trade Commission has proposed a new rule that would ban employers from imposing “non-competes” on staff, a widespread practice that impacts many DermPA™s across the country. Agency officials estimate banning the practice would increase wages by nearly $300 billion per year and expand career opportunities by about 300 million Americans.

The FTC is seeking public comment on the proposed rule, which is based on a preliminary finding that non-competes constitute an unfair method of competition and therefore violate Section 5 of the Federal Trade Commission Act. The public comment period ends March 20, 2023.

According to a statement released by the FTC, the proposed rule would generally prohibit employers from using non-compete clauses. Specifically, the FTC’s new rule would make it illegal for an employer to:

• enter into or attempt to enter into a non-compete with a worker;
• maintain a noncompete with a worker; or
• represent to a worker, under certain circumstances, that the worker is subject to a non-compete.

The proposed rule would apply to independent contractors and anyone who works for an employer, whether paid or unpaid. It would also require employers to rescind existing non-competes and actively inform workers that they are no longer in effect.

To submit comments, click here. The final rule will be based on the public comments and further analysis by the FTC.

Comments...

John H. Hendrick says...

Posted Friday, April 26, 2024

I am against the non compete. I have a 10 mile, 2 year noncompete in my contract. The radius of this consumes pretty the entire town that I live in. This would likely force us to move to be able to get a different job. I hope this truly comes to fruition.

Dawna Dennis says...

Posted Wednesday, March 8, 2023

As a dermatology PA, I have experienced the stress and unemployment due to a non-compete. I had a 2 yr, 15 mile noncompete with my previous employer. I live in a densely populated suburban area of New York. She had previously sued a PA over the non-compete, despite this PA taking an part time job outside of the 15mile radius, because the employer had other offices within that area. The lawsuit sided with the PA eventually, but after great personal stress and trauma to the PA. Knowing my employer would not hesitate to sue me, I was unemployed for 6 mo, rather than taking multiple positions available. I ended up taking a job with a 45min commute, because that is what 20 miles looks like in this area. While happy with my current job, despite its distance, I feel it is unfair for the employer to have this power over my career and choices. I know employers want to protect their interests and patient base, but I feel like a non solicitation would be more fair and appropriate.