FTC and Noncompete Clauses

FTC and Noncompete Clauses

From the AMA:

As you may know, the Federal Trade Commission published a proposed rule on January 19th that would ban most noncompete clauses.

The AMA has existing policy specifically addressing noncompetes, including a Code of Medical Ethics opinion. This ethics opinion recognizes that physicians often have diverse opinions about noncompetes. AMA policy opposes unreasonable noncompetes. The AMA will be submitting comments by the March 20 deadline, and our comments will be guided by this policy.

In the meantime, the AMA has been responding to media inquiries as they come in with the following statement:

The AMA appreciates the Federal Trade Commission’s examination of noncompete agreements in the workplace. While the AMA’s membership has diverse perspectives on noncompetes—with some members in an employer/practice ownership role and some in an employee role—AMA ethics policy opposes unreasonable noncompetes. Many states have enacted negotiated health care-specific noncompete statutes that take into account their unique health care markets and that balance the competing stakeholder interests. The balanced approach of these states must be considered against a proposed universal federal ban on all noncompete agreements.

The AMA welcomes our Federation members to share your views on the proposed rule. Also, we will be happy to share with you our draft comments prior to the deadline if doing so would help you develop your own comments. Please send any comments to wes.cleveland@ama-assn.org.

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