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FTC Continues to Target Noncompetes

Client Alert

The Federal Trade Commission (FTC) is targeting noncompete agreements in the healthcare sector, particularly those that may prevent providers from working in areas with high patient need.

On September 10, the FTC Chair sent letters to several large healthcare employers and staffing firms, urging a review of employment and noncompete agreements to ensure they are appropriately tailored and lawful. The letters highlight that unreasonable restrictions on nurses, physicians, and other medical professionals can limit employment options and reduce patient choice, especially in rural communities where healthcare resources are already limited.

While the FTC continues to enforce antitrust laws against noncompetes, it is important to note that it is not currently reinstating the previously proposed nationwide noncompete ban, which courts blocked in 2024. Instead, enforcement will focus on agreements that may be overbroad or unreasonably limit workers’ mobility.

As a call to action, the Deputy Director of the FTC’s Bureau of Competition emphasized that employers, beyond those receiving letters, should review contracts to ensure that any restrictions comply with the law.

As to Ohio, noncompetes remain generally enforceable. The state has not yet enacted statutes limiting noncompetes, but lawmakers have introduced Senate Bill 11, which would (among other restrictions) prohibit agreements that restrict a worker from joining another employer for a specified period, within a specified geographic area, or in a similar role.

Employers (particularly healthcare employers) should review existing noncompete agreements to ensure compliance with current FTC enforcement measures. Should you need assistance reviewing agreements or have questions regarding noncompetes or the content of this client alert, please contact Partners and Co-Chairs of BMD’s Labor & Employment Group, Adam Fuller or Bryan Meek at adfuller@bmdllc.com or bmeek@bmdllc.com


RNs and APRNs Take Note: Ohio Board of Nursing Mandates a New CE Reporting Period

Ohio’s Board of Nursing has updated the continuing education reporting period for RNs and APRNs. Beginning March 26, 2026, CE credits must be completed between July 1 and June 30 of odd-numbered years, replacing the previous November to October timeframe.

Ohio Med Spas: Peptide Do's and Do Not's

Recent guidance from the Ohio Board of Pharmacy outlines key compliance requirements for med spas using peptides. While some peptide drugs are FDA approved, others are not or cannot be compounded. Med spa operators should ensure they source medications from licensed suppliers, avoid non-approved or “research use only” products, and follow all compounding and storage regulations to maintain compliance and avoid enforcement actions.

Substance Use Disorder Providers: 42 CFR Part 2 Now Enforceable

Updates to 42 CFR Part 2 are now enforceable, bringing significant changes to how substance use disorder (SUD) records are handled. The Final Rule aligns Part 2 more closely with HIPAA, introduces updated penalties, allows a single patient consent for treatment, payment, and operations, and adds new requirements for Notices of Privacy Practices. It also creates a formal definition of SUD counseling notes and imposes strict consent requirements for their use and disclosure. Providers should review and update policies to ensure compliance.

AAA Introduces AI-Assisted Arbitrator for Certain Disputes

The American Arbitration Association has introduced an AI-assisted arbitration platform designed to streamline certain document-based disputes. While a human arbitrator still makes the final decision, the technology can improve efficiency, reduce costs, and accelerate case resolution. Companies should weigh these benefits against considerations such as transparency, risk, and contractual requirements before adopting AI-assisted arbitration.

Quiet Hours Texts and TCPA Claims: Consent Remains King as Courts Divide on Text Messages

Businesses face increasing TCPA lawsuits over off-hours marketing texts, but recent court decisions highlight strong defenses. Clear consumer consent and updated terms and conditions can defeat many claims, while a growing number of courts are finding that text messages are not “telephone calls” under the statute. Proactive compliance measures, including clickwrap agreements and forum-selection clauses, are critical to reducing risk.