In recent years, lawmakers in various states have taken measures to restrict or outright ban noncompete agreements for healthcare professionals. This trend has emerged in response to concerns that the Federal Trade Commission’s efforts to nationwide ban these clauses may face challenges.
On April 23, the FTC announced a final rule that would prohibit noncompete provisions preventing workers from switching jobs within an industry. Almost immediately, legal challenges were filed. In response to this development, Maryland Governor Wes Moore signed bipartisan legislation (HB 1388) into law just two days later, making it illegal for healthcare professionals in the state to enter into noncompete agreements.
This move is part of a growing trend among states to limit the use of noncompete agreements in healthcare, which can hinder the ability of professionals to find better job opportunities or provide care in underserved areas. By doing so, states are working towards creating a more equitable and flexible environment for healthcare workers to succeed and grow in their careers while ultimately benefiting patients by ensuring access to a diverse and skilled workforce.