Lawmakers in various states are taking steps to restrict or prohibit noncompete agreements for healthcare professionals in response to concerns about the challenges that may arise from the Federal Trade Commission’s (FTC) efforts to ban these clauses nationwide. The FTC recently finalized a rule on April 23 that would prohibit noncompete provisions that prevent workers from switching jobs within an industry, prompting immediate legal challenges.
In response to this development, Maryland Governor Wes Moore signed a bipartisan bill (HB 1388) into law just two days later, prohibiting noncompete agreements for healthcare professionals in the state. This move marks a growing trend among states to limit the use of noncompete agreements in healthcare, which can limit professionals’ ability to seek better job opportunities or provide care in underserved communities.
These legislative actions are aimed at protecting healthcare workers’ rights and promoting 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.
