The U.S. Federal Trade Commission (FTC) has rescinded the 2024 rule that prohibited most non-compete agreements for employees. This is reported by the industry publication DVM360, highlighting the implications for the veterinary community.
A non-compete agreement is a contract between an employee and employer that prohibits the employee from working for competitors or in the same field in a specific geographic area and for a certain period after leaving the job.
Previously, U.S. authorities limited the ability of employers to enter into such agreements with employees, which protected workers and stimulated the growth of new businesses. Now the federal ban has been lifted: non-compete agreements are once again legal if a specific state allows them, and regulation has been shifted to the state level.
Veterinarians have emerged as one of the most active professional groups in discussing the ban.
"I was struck by how actively veterinarians responded to our inquiries. Hundreds of people shared stories about how non-compete agreements burdened them with costly lawsuits, deprived them of opportunities to work under better conditions and salaries, and forced them to relocate with their families or commute for hours," noted former FTC Chair Lina Khan.
For American veterinarians, the new rules mean that restrictions on changing jobs and salaries may again become a reality. The FTC stated that it will continue to monitor individual cases where non-compete agreements violate the law and will work with state authorities to protect workers.
