Federal Trade Commission Bans Noncompete Clauses

Up to 45% of physicians are subject to noncompete clauses, contractual requirements that can prevent them from changing jobs, which can limit competition and access to care, according to the American Medical Association. However, employers will no longer be allowed to enforce noncompete clauses as of August, when a final rule issued by the Federal Trade Commission (FTC) banning noncompete clauses goes into effect. The move will reduce health care costs by up to $194 billion over the next 10 years, the FTC predicted.