{"id":57530,"date":"2024-08-22T20:11:00","date_gmt":"2024-08-22T20:11:00","guid":{"rendered":"https:\/\/www.dinsmore.com\/?post_type=publications&#038;p=57530"},"modified":"2025-11-24T17:50:51","modified_gmt":"2025-11-24T17:50:51","slug":"texas-court-revives-viability-of-healthcare-non-competes","status":"publish","type":"publications","link":"https:\/\/www.dinsmore.com\/publications\/texas-court-revives-viability-of-healthcare-non-competes\/","title":{"rendered":"Texas Court Revives Viability of Healthcare Non-Competes"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.dinsmore.com\/wp-content\/uploads\/2024\/08\/jill-Header.jpg\" alt=\"On August 20, 2024, the United States District Court for the Northern District of Texas set aside the Federal Trade Commission (\u201cFTC\u201d) rule banning most existing non-compete agreements and prohibiting new non-compete agreements, except in limited circumstances (\u201cFinal Rule\u201d), which was scheduled to become effective on September 4, 2024. Please see the Dinsmore &amp; Shohl LLP legal alert issued Wednesday here. As a result, the Final Rule will not be enforced or otherwise take effect on September 4, 2024, or thereafter. As we first reported in late April, the development in early July and later the decision in Pennsylvania, healthcare providers, primarily those that are for profit, would have been subject to the Final Rule, which would have presented a major change to healthcare industry hiring efforts, investment in personnel, hospital-provider alignment and transactional analysis.  With respect to non-profit healthcare providers, the FTC had indicated its intent to exert its jurisdiction to the maximum extent possible by evaluating non-profits for compliance with standards governing non-profit entities. For healthcare providers that use non-compete agreements, the Ryan decision is a welcome reprieve from the fast-approaching September 4 deadline.  As a result of the Ryan decision, healthcare providers are not required to make changes to their employment agreements to eliminate non-compete provisions and no longer need to explore other contractual countermeasures that may have been less protective than non-compete agreements.  In addition, healthcare providers are not required to send notices to employees and former employees who have non-compete agreements in effect.  Dinsmore will continue to notify you of developments as they become available. In the meantime, if you have any questions about the Final Rule or need strategic advice and counsel, do not hesitate to contact your Dinsmore attorney.\"\/><\/figure>\n\n\n\n<p>On August 20, 2024, the United States District Court for the Northern District of Texas blocked the Federal Trade Commission&#8217;s (&#8220;FTC&#8221;) rule that would have banned most existing non-compete agreements and prohibited new ones, except in limited circumstances. Please see the Dinsmore &amp; Shohl LLP legal alert issued Wednesday <a href=\"https:\/\/www.dinsmore.com\/labor\/publications\/ftc-rule-prohibiting-non-compete-agreements-set-aside-by-texas-court\/\">here<\/a>. This rule, known as the \u201cFinal Rule,\u201d was scheduled to take effect on September 4, 2024.<\/p>\n\n\n\n<p>As we first reported in late <a href=\"https:\/\/www.dinsmore.com\/health-care-industry\/publications\/questions-abound-in-the-healthcare-industry-after-federal-trade-commission-bans-non-competes\/\">April<\/a>, the development in early <a href=\"https:\/\/www.dinsmore.com\/health-care-industry\/publications\/court-blocks-ftcs-non-compete-rule-for-plaintiffs\/\">July<\/a> and later the <a href=\"https:\/\/www.dinsmore.com\/health-care-industry\/publications\/pennsylvania-court-rules-non-compete-ban-can-stand\/\">decision<\/a> in Pennsylvania, healthcare providers, primarily those that are for profit, would have been subject to the Final Rule, which would have presented a major change to healthcare industry hiring efforts, investment in personnel, hospital-provider alignment and transactional analysis.&nbsp;With respect to non-profit healthcare providers, the FTC had indicated its intent to exert its jurisdiction to the maximum extent possible by evaluating non-profits for compliance with standards governing non-profit entities.<\/p>\n\n\n\n<p>For healthcare providers that use non-compete agreements, the <em>Ryan<\/em> decision is a welcome reprieve from the fast-approaching September 4 deadline.&nbsp; As a result of the <em>Ryan<\/em> decision, healthcare providers are not required to make changes to their employment agreements to eliminate non-compete provisions and no longer need to explore other contractual countermeasures that may have been less protective than non-compete agreements.&nbsp; In addition, healthcare providers are not required to send notices to employees and former employees who have non-compete agreements in effect.<\/p>\n\n\n\n<p>Dinsmore will continue to notify you of developments as they become available. In the meantime, if you have any questions about the Final Rule or need strategic advice and counsel, do not hesitate to contact your Dinsmore attorney.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On August 20, 2024, the United States District Court for the Northern District of Texas blocked the Federal Trade Commission&#8217;s (&#8220;FTC&#8221;) rule that would have banned most existing non-compete agreements and prohibited new ones, except in limited circumstances. Please see the Dinsmore &amp; Shohl LLP legal alert issued Wednesday here. This rule, known as the\u2026<\/p>\n","protected":false},"author":8,"featured_media":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"tags":[],"publication-type":[12],"class_list":["post-57530","publications","type-publications","status-publish","format-standard","hentry","publication-type-legal-alerts"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.5 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Texas Court Revives Viability of Healthcare Non-Competes - Dinsmore &amp; Shohl<\/title>\n<meta name=\"description\" content=\"Texas Court Revives Viability of Healthcare Non-Competes Read insights and legal analysis from attorneys at Dinsmore &amp; Shohl LLP.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dinsmore.com\/publications\/texas-court-revives-viability-of-healthcare-non-competes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Texas Court Revives Viability of Healthcare Non-Competes\" \/>\n<meta property=\"og:description\" content=\"Texas Court Revives Viability of Healthcare Non-Competes Read insights and legal analysis from attorneys at Dinsmore &amp; 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