Physician specialists tout ‘big win’ in fight to uphold FTC noncompete clause ban

Physician specialists are touting an apparent victory in the fight to uphold the Federal Trade Commission’s recently announced ban on noncompete clauses in employment agreements.

A Pennsylvania federal judge this week declined to issue an order preliminarily blocking the ban before its Sept. 4 go-live date. In issuing the decision, the court rejected plaintiffs’ assertion that the rule is an improper use of the agency’s authority, law firm Fisher Phillips reported July 24.

The American College of Emergency Physicians celebrated the ruling Wednesday, calling it a “big win and strong step” toward banning these agreements.

“ACEP strongly applauds the Pennsylvania court decision clearing a way for the FTC ban on noncompetes to go forward,” the college said. “ACEP fights for you—impacting these decisions from the start—by sharing your stories and fiercely defending your rights on the job.”

The decision conflicts with a different ruling issued by a Texas federal court earlier this month. Judge Ada Brown sided with Dallas tax services firm Ryan LLC, the U.S. Chamber of Commerce and others on July 3, granting a preliminary injunction. The ruling only applied to the plaintiffs in that case, though some said this could be a signal that the court could eventually overturn the ban entirely.

“Those who wanted a nationwide injunction from the Eastern District of Pennsylvania will be disappointed by yesterday’s ruling,” Fisher Phillips noted.

What’s next? Brown indicated she would issue a final ruling on Aug. 30 to potentially apply the ban nationwide. Another challenge also is pending in Florida federal court, but the case is lagging the other two, the analysis noted. If all attempts fail, attorneys could further pursue an injunction through the federal court of appeals.