The Past, Present, and Future of Restrictive Covenants in Medicine in the United States A Narrative Review

Restrictive covenants (RCs) are clauses placed into employment agreements across various industries, and they are frequently used in health care—specifically within physician contracts. Given the most recent guidance and rule determined by the Federal Trade Commission in April 2024, the relevancy of RCs in health care has come under even more scrutiny in the latter half of 2024. This review will focus on the history of RC law and review the value of these clauses from the perspectives of the employer, practicing physician, and patient. We also provide the stakeholder responses to both the ban and the subsequent blockage of enforcement by a Texas federal court in August of 2024.