FTC vacates noncompete rule from previous administration 

The Federal Trade Commission Sept. 5 voted 3-1 to vacate the noncompete final rule issued last year by the previous administration. The rule banned, as an unfair method of competition, contractual terms prohibiting workers from pursuing certain employment after their contract with an employer ends. The AHA has opposed the rule since it was initially proposed in 2023. In an amicus brief filed in February with the Federation of American Hospitals, the AHA said the rule “could create significant distortions in the health care labor market because the Commission lacks the statutory authority to apply the rule to nonprofit hospitals.” 

The FTC Sept. 4 issued a request for information on noncompete agreements, saying it seeks to “better understand the scope, prevalence, and effects of employer noncompete agreements, as well as to gather information to inform possible future enforcement actions.”