Input Needed on Your Experience with Non-Compete Agreements

In accordance with President Biden’s executive order, the Federal Trade Commission (FTC) has proposed a rule [PDF] that would ban the use of non-compete clauses in employment contracts. The rule has not been finalized and the FTC has extended its comment period through April 19, 2023. This is a contentious issue and over 16,200 comments have already been submitted to the FTC. The rule is joined by similar federal legislation, the Workforce Mobility Act of 2023 (S. 220), that was introduced to accomplish the same goal of eliminating the use of non-compete agreements.

Non-compete agreements affect audiologists and speech-language pathologists (SLPs) as both employees and employers. ASHA is developing resources on non-compete agreements used for both clinicians (who may be subject to them) as well as employers (who use them to protect their business). Your input is critical for us to learn more about the ways we can help you navigate this complex contractual provision!

If you are a member, we need input on your experience with non-compete agreements, including what alternatives you may be using. Please share your experience with us through this short questionnaire before March 31, 2023.

Your input will remain anonymous, and the results will be shared in aggregate.

Background

The FTC defines non-compete agreements as clauses in employment contracts that restrict a worker from working for a competing entity, or starting their own competing business, within a certain geographic area and/or period of time after their employment ends. According to the FTC, approximately 30 million Americans―about one in five workers―are subject to a non-compete clause as part of their employment contract.

On one hand, non-compete clauses have a significant impact on an employees’ ability to secure new employment and can decrease competition in distinct geographic areas. Non-competes can keep employees in situations where they disagree with their employer’s ethics, policies, or practice patterns. They can also create barriers to increasing provider wages. According to the FTC, the proposed rule could increase workers’ earnings [PDF] across industries and job levels by nearly $300 billion per year.

On the other hand, non-compete agreements are used by employers for many reasons, including protecting education and training investments made in their employees, retaining confidential trade or practice information, and minimizing the risk of losing clients to a rival or newly formed business.

Questions?

Contact ASHA’s health care and education policy team at reimbursement@asha.org.

ASHA members are encouraged to seek legal counsel in their state for questions or guidance on specific non-compete agreements.