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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.