Governors in several states are taking proactive steps to ban or restrict noncompete agreements for healthcare professionals and doctors, in response to concerns that the Federal Trade Commission’s (FTC) national effort may face legal challenges. On April 23, the FTC announced a final rule that would prohibit noncompete provisions preventing workers from changing jobs within the same industry, supported by the Biden administration but facing legal challenges.
In response to this development, Maryland Governor Wes Moore signed bipartisan legislation (HB 1388) into law just two days later. The legislation bans noncompete agreements for healthcare professionals in the state, reflecting growing attention to the potential negative impacts of such agreements on healthcare workers and the industry as a whole. This move is part of a broader trend of state-level actions to address concerns about the use and enforcement of noncompete agreements in healthcare settings.