Little Health Law Blog
Our healthcare and business law firm guides many medical practices and physicians through employment matters. At this point, most people are aware that the Federal Trade Commission (“FTC”) published its final non-compete rule on April 23, 2024. As of the date of this blog post, the rule is expected to become effective on September 4, 2024. There are legal challenges against the rule, including Ryan, LLC v. FTC in the U.S. District Court for the Northern District of Texas and ATS Tree Services, LLC v. FTC in the U.S. District Court for the Eastern District of Pennsylvania. The judges in both cases anticipate making some decisions in each case within the next few weeks, which will provide more information about whether the rule will become effective on September 4, 2024. It is important, however, that businesses begin gathering necessary information for counsel to review, such as all employment agreements, independent contractor agreements, and employee handbooks, now so that business are able to comply with the FTC rule if it becomes effective on September 4, 2024. If you need assistance preparing for and complying with the FTC rule or would like to discuss this blog post, you may contact our healthcare and business law firm at (404) 685-1662 (Atlanta) or (706) 722-7886 (Augusta), or by email, info@hamillittle.com. You may also learn more about our law firm by visiting www.hamillittle.com.
In addition to the above information about key dates and current legal challenges, below are three key facts about the FTC non-compete rule as it is currently written:
- The rule limits non-competes both prospectively and retrospectively. Prospectively, the rule prevents employers from entering into non-competition clauses after the effective date. Retrospectively, it prevents employers after the effective date from enforcing non-competes that it previously entered into (and requires the employer to provide notice of the same).
What does the rule mean by stating that an employer may not “enforce” an existing non-compete? This is broadly construed to mean that the employer may not do things like initiate a lawsuit, send a demand letter, or even remind the worker of his or her non-compete obligations during an exit interview.
Our healthcare and business law firm often represents medical practices, including primary care practices, specialty practices, and med spas, in the initial set up phase of their practice. Whether a Management Services Organization (“MSO”) is necessary or advisable for your practice usually requires a detailed review of your business structure and state laws. If an MSO is advisable for your practice based on the Corporate Practice of Medicine (“CPOM”) doctrine in your state, this post provides 3 key provisions that should be within your Management Services Agreement (“MSA”). If you have medical practice set up or MSO questions or would like to discuss this blog post, you may contact our healthcare and business law firm at (404) 685-1662 (Atlanta) or (706) 722-7886 (Augusta), or by email, 
Our healthcare and business law firm often represents medical practices, including primary care practices, specialty practices, med spas, and IV hydration clinics, in the initial set up phase of the business. Related to