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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


Status Update: Physician Noncompete Agreements in Ohio

Noncompete agreements remain enforceable in Ohio if they meet specific legal requirements. While the AMA and FTC have challenged these restrictions, courts continue to uphold reasonable noncompete provisions for physicians. Recent cases, like MetroHealth System v. Khandelwal, highlight how courts may modify overly restrictive agreements to balance employer interests with patient care. With ongoing legal challenges to the FTC’s proposed ban, Ohio physicians should consult a healthcare attorney before signing or challenging a noncompete agreement.

Immigration Orders and Their Economic Impact on Small Business: Insights from Attorney and Former Immigration Judge Rob Ratliff

President Trump's recent executive orders, targeting immigration policies, could significantly impact small businesses in Ohio, particularly those owned by undocumented immigrants. With stricter visa vetting, halted refugee admissions, and potential deportations, these businesses face uncertainty, workforce disruption, and closures. Ohio's immigrant-owned businesses, especially in food services and transportation, contribute billions to the state economy, and any disruption could result in economic ripple effects.

Corporate Transparency Act Ruling from the U.S. Supreme Court

The U.S. Supreme Court recently ruled on the enforceability of the Corporate Transparency Act (CTA), lifting an injunction previously imposed by the Fifth Circuit. However, a separate nationwide injunction remains in effect, meaning businesses are still not required to comply with the CTA’s reporting requirements. FinCEN continues to accept voluntary reporting while enforcement remains paused.

Lead Paint Contamination and Resources for Ohio Landlords

Children are exposed to lead-based paint, which was used in most homes until it was banned in the US in 1978 and “can severely damage the brain and central nervous system causing coma, convulsions and even death.” Property owners and landlords should educate themselves on regulations and resources to mitigate their own liability.

Will Student-Athlete Collectives Survive NIL Changes?

By July 2025 the landscape of student-athlete funding will look nothing like the current landscape, so preparing now is a must. If you are a student-athlete, the parent of a student-athlete, a university/college, or “booster”, it behooves you to understand these evolving issues.