Breaking the Chains: How States are Restricting Noncompete Agreements for Healthcare Workers and Promoting Competition in the Industry

Lawmakers in multiple states are taking action to restrict or prohibit noncompete agreements for healthcare professionals in response to growing concerns that these clauses can limit the ability of workers to seek better job opportunities and hinder their ability to provide care in underserved communities. The Federal Trade Commission (FTC) recently announced a final rule on April 23 that would prohibit noncompete provisions preventing workers from changing jobs within an industry, but legal challenges have already begun.

Following this development, Maryland Governor Wes Moore signed bipartisan legislation (HB 1388) into law just two days later, banning noncompete agreements for healthcare professionals in the state. This move represents a growing trend among states to curb the use of noncompete agreements in healthcare, which can limit the ability of workers to find new job opportunities and hinder their career growth.

These legislative actions are aimed at protecting healthcare workers’ rights and promoting competition in the industry, ultimately benefiting patients by ensuring access to a diverse and skilled workforce. By limiting the use of noncompete agreements for healthcare professionals, states are working to create a more equitable and flexible environment for workers to thrive and advance in their careers.