Compliance Stuff

Healthcare employers and the staffing firms who serve them should take note: federal authorities recently announced they will specifically target the use of noncompetes and other restrictive covenants in the healthcare space . The Federal Trade Commission announced on September 10 that it issued warning letters to several large healthcare employers and staffing firms, urging them to review their noncompete agreements and other restrictive covenants to ensure they are legally sound and don’t infringe on workers’ rights. What are the five biggest takeaways from this latest threat, and what are the five actions steps you should consider to avoid legal complications? Quick Backstory FTC Chairman Andrew N. Ferguson explained in  his September 10 announcement  that the letters “urge recipients to conduct a comprehensive review of their employment agreements – including any noncompetes or other restrictive covenants – to ensure they are appropriately tailored and comply with th...

On June 20, 2025,  Texas Senate Bill 1318  was signed into law, introducing new restrictions on noncompete agreements entered with physicians licensed by the Texas Medical Board and other healthcare practitioners in Texas. Effective September 1, 2025, the statute requires physician noncompetes to contain a strict duration, geographic scope, and buyout terms to be enforceable, and poses additional restrictions for noncompetes with dentists, nurses, and physician assistants. BEFORE THE CHANGES Existing Texas law treats physician noncompetes as a distinct category. Under the  Texas Business & Commerce Code  15.50(b), a physician covenant is enforceable only if it meets a strict criteria, in addition to the reasonableness standard that applies generally to all Texas noncompetes. Before this change, physician noncompetes in Texas were only enforceable if they: allowed the physician access to a list of the patients seen or treated within one year from the physician’s t...