FTC ban on noncompete could affect dentists
Switching jobs could be easier for dental associates
by KEVIN KUO, DDS, MMSc | January 9, 2023
The Federal Trade Commission (FTC) recently announced a ban on restrictive covenants, or noncompete clauses, in the United States.
The proposed rule would prevent employers from imposing contract clauses that prohibit their employees from joining a competitor, typically for a period of time, after they leave the company.
The FTC's decision is part of President Biden's agenda and is expected to have a positive effect on wages across the U.S.
The general public has 60 days to submit commentary prior to ban implementation.
The proposed ban is being welcomed by advocates for workers' rights who see it as a way to help protect wages and working conditions. However, opponents of the proposed rule argue that it could limit companies' ability to protect their trade secrets and commitment to training.
Author commentary: This ban could have an impact on the dental industry, as it would make it easier for associate dentists to change jobs or start their own offices in closer proximity to their employers.
The ban could motivate owner dentists to pay higher percentages of production/collections to keep their associates from leaving.
