Matt Fontana Provides Insight on the FTC’s Final Rule to Ban Non-Compete Agreements

On April 23, 2024, the U.S. Federal Trade Commission (FTC) voted to finalize and promulgate a final rule that bans noncompete agreements for the vast majority of workers.

Axios reported on the news and how it may impact health care in the article, “New ban on noncompetes could have big impact on health care.” The publication turned to labor and employment partner Matt Fontana for his insight on what the rule means for employers.

Fontana highlighted that noncompetes tied to the sale of a business, like a physician practice, would still be allowed under the FTC rule. “There’s a lot of good policy reasons why,” Fontana explained. “I don’t want to shell out a bunch of money for something if could then just recreate that and basically suck all the value out of what I purchased."