On Sept. 4, the Federal Trade Commission (FTC) released a Request for Information (RFI) asking for input from stakeholders on how noncompete agreements are used, how common they are, what kinds of workers are bound by them and the kinds of restrictions they often impose (e.g. duration, geography, roles). The RFI also asks for information on how these agreements impact job mobility, wages and hiring challenges, such as for employers trying to hire people bound elsewhere.
Due to the specificity and tone of the questions, ACR members are encouraged to respond to the RFI and give their personal experience about how noncompete agreements have impacted them. Instructions for responding confidentially are given in the RFI. The deadline for responding is Nov. 3.
The RFI comes on the heels of the FTC withdrawing its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC, both of which ruled that the FTC overstepped its rulemaking authority when it banned most noncompete agreements in 2024. The ACR strongly supported the 2024 rule. However, with a broad rule off the table for now, the FTC has signaled it plans to enforce the law against noncompete agreements in specific instances where it views them as unfair or anticompetitive.
In particular, the ACR is encouraged that the FTC has once again signaled that it is ramping up scrutiny of noncompete agreements, this time with a pointed message to healthcare employers and staffing firms. On Sept. 9, it issued formal warning letters to several large companies in the healthcare sector, urging them to review their use of noncompete clauses and other postemployment restrictions.
The RFI also signals the FTC’s intent to gather detailed data to identify where noncompete agreements are overused or harmful. This will help inform whether enforcement actions are justified in specific cases. Since the broad noncompete ban was rejected, the FTC seems to be favoring a case-by-case or sector-by-sector approach. Input gathered through the RFI may help the FTC decide where to focus its investigations.
The ACR is working to amplify the voices of rheumatologists nationwide through an opinion piece to be placed in a major media outlet. Consider sharing how a noncompete agreement has negatively impacted your career and patients. Your compelling personal story and expert insights could help inform the public and policymakers. We will guide you through the process, help you craft your message and ensure your story includes a clear call to action. It requires minimal time commitment. To get involved or for further information about the ACR’s regulatory advocacy efforts, email the ACR’s advocacy team at [email protected].
ACR/ARP members can also schedule a time to meet directly with the ACR’s advocacy team to discuss issues and challenges you are facing.
