FTC bans noncompete agreements: 8 notes for dental leaders

The Federal Trade Commission issued a final rule banning new noncompete clauses for U.S. workers April 23.

Here are eight notes for dental leaders: 

1. The FTC proposed the ban in 2023 and received more than 26,000 public comments on the proposal.

2. The FTC said the final rule promotes competition, protects workers' freedom to change jobs, increases innovation and fosters new business formation.

3. About 18% of workers, or 30 million people, are covered by noncompetes, the FTC estimated.

4. The ban will go into effect 120 days after the rule is published in the Federal Register.

5. The FTC specified that while noncompetes will no longer be enforceable for most U.S. workers after the effective date, an exception was made for senior executives. Existing noncompete agreements for senior executives are still enforceable, but employers cannot enter or attempt to enforce any new noncompetes.

6. The FTC defined senior executives as those in a "policy-making position" who earn more than $151,164.

7. Barry Lyon, DDS, a chief dental officer of the division of orthodontics and pediatric dentistry at Sarasota, Fla.-based DSO Dental Care Alliance, told Becker's in January 2023 that a noncompete ban could be "detrimental" to DSOs by hindering competition and potentially leading to additional employee turnover.

8. Several dentists also told Becker's last year that a noncompete ban could harm private dental practices.

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