Medical Spa Insider
FTC’s Final Rule on Non-competes: What You Need to Know
May 1, 2024
Legal experts Patrick O'Brien and Grace Lee discuss the FTC's final rule on non-competes, its impact on medical spas, and the potential challenges and changes for employers, including the ban on non-competes for most workers except senior executives. They delve into the implications for medical directors, training investments, and how businesses should navigate the evolving landscape of non-compete agreements.
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Quick takeaways
- The FTC's final rule on non-compete clauses prohibits restrictions on worker mobility, impacting medical directors and training investments.
- The rule applies broadly to all workers with exceptions for senior executives, creating a complex landscape for businesses to navigate.
Deep dives
FTC's Ban on Non-Compete Clauses Impacts Various Industries
The recent announcement by the FTC banning non-compete clauses in employment contracts has significant implications across industries, particularly in high-skill sectors like healthcare and medical spas. This rule prohibits the use of non-competes that restrict workers from seeking new employment or starting their own businesses after leaving their current positions. Businesses are now mandated to inform current and past employees about the inapplicability of non-competes, with specific exceptions for executive employees. The rule aims to protect worker mobility while acknowledging concerns about protecting businesses' investments in employee training.
