Navigating Noncompetes: What You Should Know in 2025
Clayton Bunting5/1/25 1:26 PM (CDT)
This weekend, I had the opportunity to participate in AANEM’s Young Leadership Emerging Leaders Forum, where we discussed important topics related to physician contracting. One of the issues that came up was noncompete agreements — an increasingly important topic for early-career physicians.
The Current Landscape:
At the federal level, the Federal Trade Commission (FTC) voted to ban most noncompete agreements in April 2024. However, the rule is currently on hold due to ongoing legal challenges. A federal judge in Texas issued an injunction, questioning whether the FTC has the authority to enforce the ban. The issue is now under appeal, and it remains uncertain when — or if — the rule will take effect nationwide.
At the state level, laws vary dramatically:
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Banned or heavily restricted: States like California, Minnesota, North Dakota, and Oklahoma prohibit most noncompetes.
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Conditional enforcement: Other states allow noncompetes based on criteria like salary thresholds, job duties, or geographic limits.
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In flux: Many legislatures are actively introducing reforms to limit or eliminate noncompetes, especially in healthcare.
Why This Matters for New Physicians:
Noncompete clauses can limit your ability to work within a certain geographic area after leaving a job — sometimes for 1–2 years or more. This is especially burdensome if you want to stay near family, are repaying student loans, or are part of a dual-physician couple.
Key risks for young doctors:
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Geographic restrictions that force relocation after job changes.
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Delayed career mobility if you’re unhappy with your first job.
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Hidden legal language that’s not always obvious in the contract.
What You Can Do:
-Know your state laws. Even within the same region, rules can vary significantly.
-Negotiate early. Noncompetes are easier to modify before you sign — not after you’re on payroll.
-Get legal advice. A lawyer familiar with physician contracts can help you understand what's enforceable and help you negotiate fairer terms.
-Ask the right questions during interviews:
-Get legal advice. A lawyer familiar with physician contracts can help you understand what's enforceable and help you negotiate fairer terms.
-Ask the right questions during interviews:
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Is there a noncompete?
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What is the geographic scope and duration?
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Are there any carve-outs for specific locations or roles?
Bottom Line:
Noncompetes aren’t just legal boilerplate — they can reshape your life and career trajectory. While the federal situation remains unsettled, it’s up to you to stay informed and protect your options. Don’t sign anything without understanding the long-term implications.
There will be a session on contracting at the AANEM Annual Meeting in San Francisco so be sure to attend!
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