The American Hospital Association (AHA) and Federation of American Hospitals (FAH) have filed an amici curiae brief in the lawsuit attempting to overturn a May 2024 Federal Trade Commission rule banning most non-compete restrictions on employees.
The healthcare industry said that it faces severe skilled labor shortages that differ between nonprofit and taxpaying hospitals, which could result in "significant distortions" in competition.
The case, known as Ryan LLC, et al. v. Federal Trade Commission, is a lawsuit attempting to overturn the FTC's non-compete rule that says such restrictions are "an unfair method of competition" between companies. The agency pointed to "empirical research showing that they tend to harm competitive conditions in labor, product, and service markets" and has estimated such contracts cover one in five workers.
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