FTC Bans Non-Competes – What this means for you

The biggest news to hit the employment market last week affects the veterinary industry as well. The Federal Trade Commission (FTC) has announced a rule to ban noncompete agreements, leaving the door open for workers in any field to change jobs without penalty or delays.

The FTC said by protecting the “fundamental freedom” of individuals to change jobs, the nation will facilitate innovation and the creation of new businesses, citing that noncompete agreements keep wages low and prevent startup companies from forming.

Traditionally, noncompete agreements kept workers tied to a job, often at a fixed salary, and prevented them from leaving to go to another company in a similar field or nearby location. If the agreement were broken, the employee would often pay a hefty penalty.

Non-competes are often used in the veterinary profession to retain doctors at a practice. So, what are some alternatives? The FTC said the use of trade secret laws and non-disclosure agreements (NDAs) still allow an employer to protect their proprietary information. Research shows about 95% of the workforce with a noncompete also have an NDA. That practice has been used in the veterinary industry as well.

Additionally, the FTC offered advice to employers looking for ways to keep staff members without using a noncompete: make your staff want to stay by improving working conditions, increasing wages, and creating a positive culture that offers merit-based rewards.

Do you have questions about this ruling? Do you need guidance on navigating how to hire new doctors during these changing times in the industry? Give me a call and I’ll explain how my team has earned a 88% success rate in bringing quality veterinarians to our clients.