On August 20, 2024, the United States District Court for the Northern District of Texas (Dallas Division) struck down the Federal Trade Commission’s (FTC) non-compete rule, 16 CFR § 910.1-6, that was set to take effect on September 4, 2024. A summary of this ruling, which has significant implications for employers nationwide, is included below.
Contract Law
Connecticut Legislature Passes Law Limiting Physician, PA and APRN Non-Compete Agreements
On June 5, 2023, the Connecticut Legislature passed Public Act No. 23-97, “An Act Concerning Health and Wellness for Connecticut Residents” (“the Act”). Sections 13 through 15 of the Act make important changes to Connecticut law governing physician, physician assistant (PA), and advanced practice registered nurse (APRN) non-compete agreements. These changes are summarized below and scheduled to take effect July 1, 2023. Governor Lamont is expected to sign the Act but has not done so as of the date of this publication.Continue Reading Connecticut Legislature Passes Law Limiting Physician, PA and APRN Non-Compete Agreements
Advisory Opinion 22-17: OIG Declines to Impose Sanctions on a Health System for Forgiveness of Credit Line Note Owed by Clinic
On September 6, 2022, the Office of Inspector General (OIG) published Advisory Opinion 22-17 (Advisory Opinion), in which it declined to impose sanctions against a regional 501(c)(3) not-for-profit health care system that operates four hospitals (Health System) and a clinic that provide services to geographic areas that have been designated as medically-underserved areas and health professional shortage areas (together, the Requestors). The Health System had supported the establishment of the clinic, which is registered as a Free Clinic and been designated as a Federally Qualified Health Center (FQHC) Look-Alike (Clinic), (but is neither a FQHC nor does it receive funds under Section 330 of the Public Health Service Act). The arrangement involves the forgiveness of a credit line note entered into by the Health System with the Clinic. The OIG concluded that although the arrangement would constitute prohibited remuneration under the federal anti-kickback statute (AKS) if the requisite intent were present, the arrangement and the safeguards in place did not warrant the imposition of sanctions.Continue Reading Advisory Opinion 22-17: OIG Declines to Impose Sanctions on a Health System for Forgiveness of Credit Line Note Owed by Clinic
New Jersey Governor Signs Act Concerning Changes in Control of Health Care Entities
On August 18, 2022, New Jersey Governor Phil Murphy signed S-315, “An Act concerning changes in control of health care entities” (the Act). The Act implements employment protection for healthcare workers when certain licensed health care facilities, staffing registries, and home care services in New Jersey undergo a change in ownership. The Act first requires that former health care entity employers provide the successor health care entity with information pertaining to employees (i.e., employee names, addresses, dates of hire, phone numbers, wage rates, employment classifications) not less than thirty days before a change in control. The Act also requires former health care entity owners to inform eligible employees of the rights provided by the Act and to post a notice of their rights under the Act in a conspicuous location.Continue Reading New Jersey Governor Signs Act Concerning Changes in Control of Health Care Entities
Connecticut Prohibits No-Hire Provisions in Homemaker and Home Health Agency Contracts
As previously addressed on this blog, Connecticut Governor Ned Lamont recently signed into law the state’s fiscal year 2023 budget (HB5506) (Act). Among other things, the Act prohibits homemaker-companion or home health agencies from contractually preventing their clients from hiring agency employees. The Act deems such “no-hire” clauses as against public policy.Continue Reading Connecticut Prohibits No-Hire Provisions in Homemaker and Home Health Agency Contracts