In recent years, lawmakers in various states have been taking action to limit or prohibit noncompete agreements for healthcare professionals. This move 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 immediately emerged, prompting some states to take matters into their own hands.
One such state is Maryland, where Governor Wes Moore recently signed bipartisan legislation (HB 1388) into law, banning noncompete agreements for healthcare professionals in the state. This move represents a growing trend among states to curb the use of noncompete agreements in healthcare, which can restrict professionals from seeking better job opportunities or hinder their ability to provide care in underserved communities.
The legislative actions taken by these states are aimed at protecting healthcare workers’ rights and promoting competition in the industry. 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. Ultimately, this benefits patients by ensuring access to a diverse and skilled workforce.