FTC Noncompete Ban Blocked

Ban will no longer take effect September 4, 2024

Dear RHC Community,

In May, NARHC shared updates on a variety of newly finalized rules with impacts for Rural Health Clinics, including the Non-Compete Clause Ban from the Federal Trade Commission.

The rule stated that beginning September 4th, 2024, new non-competes will be banned and existing non-competes for all workers, except for senior executives, will be unenforceable.

On August 20, a federal judge blocked the rule, citing a lack of authority of the FTC to enact the ban. Therefore, this ban is on hold, and will not go into effect September 4th.

If the FTC appeals this, it will likely eventually reach the Supreme Court.

Please contact Sarah.Hohman@narhc.org with any questions.

Sincerely,
The National Association of Rural Health Clinics