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FTC Ruling on Noncompete Clauses

April 25, 2024 3:49 PM | Anonymous

This week, the Federal Trade Commission (FTC) issued a ruling agreeing with a 2023 ACS letter advocating for the ban of noncompete clauses from virtually all contracts. The FTC voted 3-2 to issue regulations enforcing this ban, which will take effect 120 days after publication.

While ACS and the Chapter applauds this vote, significant questions remain regarding the FTC’s jurisdiction over nonprofit entities, including nonprofit hospitals. Some experts question whether the FTC has the authority to issue this ban at all. The US Chamber of Commerce has filed suit in court to block
these regulations from implementation.

ACS Advocacy Efforts

The ACS is committed to aggressive advocacy for legislation banning noncompete clauses at the state and federal levels. We believe it is essential to limit the increasing control large corporations have over the healthcare system, which negatively impacts our members and the physician/patient relationship.

Our Chapter will also work closely with our legal counsel, Garfunkel Wild, PC to monitor how this ruling may impact New York's physicians.

To support our advocacy efforts at the national level, please urge your Members of Congress to support legislation banning noncompete clauses.

Visit to take action.

Thank you for your continued support and advocacy.

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