Tune in to this episode to hear Shane and Anu talk about all things noncompetes, as well as a ban’s potential impact.
As a healthcare attorney and practice consultant at Knowledgeable Aging, Anu Murthy, Esq. is no stranger to contractual language and logistics. Anu previously joined host Shane Tenny to talk about physicians and dentists making the most of their employment contract in Episode 34.
Anu has expertise in medical employment contracts, partnership agreements, and other practice-related business matters — making her the perfect guest to discuss the FTC and potential changes to healthcare workers’ rights on this episode of Prosperous Doc.
Earlier this year, the Federal Trade Commission proposed a new rule that would effectively ban employers from using noncompete clauses.
If you're in the health care, dentistry, or medicine sector, you know that these noncompete clauses are part of many employment contracts, often accompanied by negotiated “restrictive covenants.”
The FTC claims these non-compete clauses suppress wages, hinder innovation, and prevent entrepreneurs from starting new businesses. The ban aims to force wage increases in the industry and expand career opportunities.
Name: Anu Murthy, Esq.
What she does: Anu is a healthcare attorney and practice consultant who exclusively focuses on physician, dentist, and advanced care practitioner employment contracts, partnership agreements, and other practice-related business matters.
Company: Knowledgeable Aging
Words of wisdom: “I am telling my clients to disregard the proposed rule for the time being. It is not going to give you any clout or any power in negotiating at the moment [...] I would recommend that they seek legal counsel just to make sure that the employer is following the rule to the letter.”
Top takeaways from this episode
[03:27] The proposition: Anu takes listeners through a brief history of the FTC’s proposed ban, with a focus on the impact this has had, and will continue to have, on healthcare providers.
[05:36] A long way back: Anu discusses how noncompetes came into existence, which dates all the way back to England in 1440.
[07:26] Independents included: The proposed rule not only includes W2 workers but independent contractors on 1099s, as well.
[13:41] Different perspectives: Anu discusses the ban from the perspective of several groups — including providers, the American Hospitals Association (AHA) and the American Medical Association (AMA). No state has adopted a total ban on noncompetes, but some have passed restrictions.
[18:47] Advice: Currently, Anu advises an employee negotiating a new contract to ignore the proposed rule and instead seek legal counsel to ensure employers are following all current rules.
[21:20] The outlook: This new rule proposed by the FTC is something that has never been done before. If it were to pass, it would affect more than 30 million Americans with non-competes clauses in their employment contracts.
Mid-career docs: have you found that your income is near its peak potential and yet you are still not sure where the money is going or what to do with the surplus? Do you have cash piling up in your checking account because you don't have the time to figure out where else to direct it? Are finances a source of confusion or even conflict in your marriage?
Disclaimer: Prosperous Doc podcast by Spaugh Dameron Tenny highlights real-life stories from doctors, dentists, and those whose work can help them to encourage and inspire listeners through discussions of professional successes and failures in addition to personal stories and financial wellness advice. Spaugh Dameron Tenny is a comprehensive financial planning firm serving doctors and dentists throughout the U.S. To find out more about Spaugh Dameron Tenny, visit our website at http://www.sdtplanning.com . You can also connect with our host, Shane Tenny, CFP®, at shane@prosperousdoc.com.
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