The Federal Trade Commission recently approved a final rule prohibiting companies nationwide from enforcing new and existing noncompete agreements on anyone other than senior executives.

Unless the effective date is stayed, the FTC's noncompete rule will become effective Sept. 24.

This article addresses the potential effects of the noncompete rule on healthcare entities, particularly nonprofit or tax-exempt healthcare entities that ostensibly fall outside the reach of both the FTC and the noncompete rule.

Originally published by Law360 - May 16, 2024.