VIDEO: Blockage of FTC noncompete agreement ban leaves decision in hands of the state
KOLOA, Hawaii — In this video from Orthopedics Today Hawaii, David M. Glaser, JD, discusses the proposal from the Federal Trade Commission to ban noncompete agreements and the impact that may have on orthopedic practices and physicians.
According to Glaser, the proposal by the FTC would have banned noncompete agreements in all for-profit entities, which would have excluded nonprofit health care organizations.
“We could have been in a weird situation where physician practices, for the most part, were not allowed to have noncompetes, but most hospital systems were,” Glaser, a health care attorney at Fredrikson & Byron, P.A., told Healio.
However, Glaser said a federal court prohibited the proposal, making it ineffective.
“What that means is that, nationally, there is nothing that allows or prohibits noncompetes,” he said. “Instead, we are stuck in the land of state law. You have to know what your state does, and the answers are all over the board.”
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