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The Federal Trade Commission Sept. 5 voted 3-1 to the noncompete issued last year by the previous administration. The rule banned, as an unfair method of competition, contractual terms prohibiting workers from pursuing certain employment after their contract with an employer ends. The AHA has the rule since it was initially proposed in 2023. In an filed in February with the Federation of American Hospitals, the AHA said the rule “could create significant distortions in the health care labor market because the Commission lacks the statutory authority to apply the rule to nonprofit hospitals.” 

The FTC issued a request for information on noncompete agreements, saying it seeks to “better understand the scope, prevalence, and effects of employer noncompete agreements, as well as to gather information to inform possible future enforcement actions.”