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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


Latest Batch of Ohio Chemical Dependency Professionals Board Rules: What Providers Should Know

The Ohio Chemical Dependency Professionals Board recently released several new rules and proposed amendments to existing rules over the past few months. A hearing for the new rules was held on February 16, 2024, but the Board has not yet finalized them.

Now in Effect: DOL Final Rule on Classification of Independent Contractors

Effective March 11, 2024, the U.S. Department of Labor (DOL) has adopted a new standard for the classification of employees versus independent contractors — a much anticipated update since the DOL issued its Final Rule on January 9, 2024, as previously discussed by BMD.  In brief, the Fair Labor Standards Act (FLSA) creates significant protections for workers related to minimum wage, overtime pay, and record-keeping requirements. That said, such protection only exists for employees. This can incentivize entities to classify workers as independent contractors; however, misclassification is risky and can be costly.

Florida's Recent Ruling on Arbitration Clauses

Florida’s recent ruling on arbitration clauses provides a crucial distinction in determining whether such clauses are void as against public policy and providers may have the opportunity to include arbitration clauses in their patient consent forms. On March 6, 2024, Florida’s Fourth District Court of Appeals reversed and remanded Florida’s Fifteenth Circuit Court ruling of Piero Palacios v. Sharnice Lawson. The Court of Appeals ruled that the parties’ arbitration agreement did not contradict the Legislature’s intent of Florida’s Medical Malpractice Act (the “MMA”), but rather reflects the parties’ choice to arbitrate claims entirely outside of the MMA’s framework. Therefore, the Court found that the agreement was not void as against public policy.

Corporate Transparency Act Update 3/14/24

On March 1, 2024, a federal district court in the Northern District of Alabama concluded that the Corporate Transparency Act (“CTA”) exceeded Congressional powers and enjoined the Department of the Treasury from enforcing the CTA against the plaintiffs. National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.). On March 11, 2024, the U.S. Department of Justice appealed the district court’s decision to the Eleventh Circuit Court of Appeals.

The Ohio State University Launches Its Accelerated Bachelor of Science in Nursing Program

In response to Ohio’s nursing shortage, The Ohio State University College of Nursing is accepting applications for its new Accelerated Bachelor of Science in Nursing program (aBSN). Created for students with a bachelor’s degree in non-nursing fields, the aBSN allows such students to obtain their nursing degree within 18 months. All aBSN students will participate in high-quality coursework and gain valuable clinical experience. Upon completion of the program, graduates will be eligible to take the State Board, National Council of Licensure Exam for Registered Nursing (NCLEX-RN).