Dive Brief:

The Federal Trade Commission is urging major healthcare employers and staffing companies to review their employment agreements to root out any restrictive noncompete clauses.

On Wednesday, FTC Chair Andrew Ferguson sent letters to an unspecified number of healthcare companies warning them that regulators will enforce the law against unfair or anticompetitive noncompetes. The letter stresses that recipients are not under any suspicion of illegal conduct.

It’s part of a larger philosophical shift at the FTC when it comes to noncompetes, as the agency pivots away from the total ban espoused by the Biden administration toward a targeted enforcement strategy. The FTC’s new position is likely a relief for hospitals and other employers, which had lobbied heavily against the ban.

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