AGD Comments on the FTC Noncompete Proposal

  • by AGD Washington Advocacy Representative
  • May 17, 2023
On April 18, the AGD submitted a comment to the Federal Trade Commission (FTC) on their proposal to ban non-compete clauses. The proposed rule would affect one in five workers in the U.S. The AGD asked the FTC to immediately withdraw their proposal as many sections of the proposal require more research and development. Noncompete clauses are fundamental business tools that are not unique to dental practices. Modifications to existing laws and regulations, especially those with such far-reaching implications, require thoughtful and deliberative consideration. The FTC proposal would negate laws in 47 states. Furthermore, the proposed rule does not define how for profit vs. not-for-profit entities would be differentiated but requested feedback so that those provisions could be included in the final rule. The rule is of great importance to many dentists; regulations must be explicit prior to any rule going final. 
Impact on General Dentistry: AGD will continue to advocate for reasonable business arrangements. Dentists care for our nation's dental needs and may hold varying positions such as associate, owner, partner, employee, and franchisee. Dentists will not have a unified opinion on the FTC's non-compete proposed rule. AGD endeavors to represent as many of our members as possible.