Federal Trade Commission Chairman Andrew N. Ferguson sent letters to several large healthcare employers and staffing firms urging them to conduct comprehensive reviews of their employment agreements to ensure compliance with federal law. The letters specifically target noncompete and other restrictive agreements that may violate antitrust regulations. The FTC expressed particular concern about employment contracts affecting nurses, physicians, and other medical professionals that could limit healthcare access for patients. According to the letters, many healthcare employers and staffing companies include unreasonable noncompete agreements in employment contracts for vital medical roles. These restrictions can unreasonably limit healthcare professionals' employment options and thereby reduce patients' choices over who provides their medical care, the agency stated. The FTC emphasized that such limitations are especially problematic in rural areas where medical services are already stretched thin. The warning letters represent a continuation of the FTC's enforcement priorities under Chairman Ferguson's leadership. "Enforcement against unreasonable noncompete agreements remains a top priority for the Federal Trade Commission," said Kelse Moen, Deputy Director of the Bureau of Competition and co-chair of the agency's Joint Labor Task Force. Moen added that the agency strongly encourages all employers to review their contracts closely, not just those receiving letters, to ensure any restrictions on employee mobility comply with federal law. The FTC derives its authority to investigate such practices from Section 5 of the FTC Act, which allows the agency to examine unfair methods of competition. This includes noncompete agreements that are unjustified, overbroad, or otherwise unfair or anticompetitive. The letters follow a Commission vote last week to withdraw from defending the Biden-Harris administration's nationwide noncompete ban, which courts had enjoined on constitutional grounds. In announcing the Commission's withdrawal, Chairman Ferguson made clear that the FTC would remain vigilant in enforcing antitrust laws against noncompete agreements. He emphasized the agency's commitment to patrolling markets for specific anticompetitive conduct that hurts American consumers and workers, and taking violators to court. The healthcare industry has come under increased scrutiny from federal regulators regarding employment practices that may restrict worker mobility. Healthcare staffing shortages have been a persistent concern nationwide, with rural areas facing particular challenges in attracting and retaining medical professionals. The FTC's action suggests the agency views overly restrictive noncompete agreements as potentially exacerbating these staffing challenges. The Chairman's letters represent the latest in a series of FTC actions targeting noncompete agreements across various industries. The agency recently launched a public inquiry to gather input that could inform future enforcement actions against restrictive employment practices. This initiative demonstrates the FTC's broader commitment to addressing what it views as anticompetitive employment restrictions. In another recent enforcement action, the FTC ordered the nation's largest pet cremation business to stop enforcing noncompete agreements, freeing nearly 1,800 workers from these restrictive contracts. This case illustrates the agency's willingness to take concrete action against what it considers overly broad employment restrictions. The letters to healthcare employers signal that the FTC is taking a targeted approach to industries where noncompete agreements may have particularly significant public interest implications. Healthcare represents a sector where worker mobility restrictions could directly impact public welfare by limiting access to essential medical services. Legal experts note that the FTC's approach under Chairman Ferguson appears to focus on case-by-case enforcement rather than broad regulatory changes. This strategy allows the agency to target specific practices that it views as most harmful to competition and consumer welfare. For healthcare employers and staffing companies, the warning letters serve as a clear signal to review their employment agreements. Companies should examine whether their noncompete clauses are narrowly tailored, justified by legitimate business interests, and compliant with applicable state and federal laws. The FTC's enforcement focus on healthcare noncompetes reflects broader concerns about market concentration and worker mobility in the medical sector. As healthcare costs continue rising and access remains challenging in many areas, regulators are increasingly scrutinizing practices that may limit competition among healthcare providers. Moving forward, healthcare employers should expect continued scrutiny from the FTC regarding employment practices that may restrict competition. The agency's letters suggest it will continue targeting agreements that it views as unreasonably limiting worker mobility, particularly where such restrictions may impact consumer access to essential services.