The FTC proposed a federal rule that would ban all non compete clauses, which would apply to all businesses and professions, including healthcare providers such as hospitals and pharmaceutical and medical supply companies. Healthcare has relied heavily on non compete agreements.
FTC Chair Lina Khan announced a proposed federal regulation that would invalidate non competes and similar restrictive covenants that are routinely used by companies to limit a former employee’s professional activities post employment. The rule would be retroactive as well.
The District of Massachusetts recently held that garden leave payments, whereby a former employee subject to a restrictive covenant is paid by the former employer for the duration.