The short answer
It depends on your state. There's no federal ban in force: the FTC's 2024 rule was set aside by a court, and the FTC dropped its appeal in 2025. Some states ban or limit non-competes, including for health care workers, while others enforce reasonable ones. Have a contract with a non-compete reviewed before you sign.
Is there a federal ban on non-competes?
No. The Federal Trade Commission adopted a rule in 2024 banning most non-competes, but a federal court set it aside before it took effect. In September 2025, the FTC voted to dismiss its appeals and accept that outcome. See the FTC's announcement.
That leaves non-competes to state law, plus the FTC's general authority over unfair competition in individual cases.
What does state law say?
It varies widely:
- Some states ban most non-competes for most workers.
- Some states limit them for health care providers specifically, or for workers below an income level.
- Many states enforce them if reasonable in time, geography, and scope, and if they protect a legitimate business interest.
Courts also weigh the public interest, and some are reluctant to enforce non-competes that keep patients from their chosen provider. Check your state's current law; it changes often.
Non-compete vs. non-solicitation: what's the difference?
| Non-compete | Non-solicitation | |
|---|---|---|
| Limits | Working in similar roles in an area for a time | Reaching out to the organization's clients or staff |
| Effect on you | Can block where you work | Usually narrower |
| Client choice | Can interfere | Clients generally can still choose to follow |
Non-solicitation clauses are more common and more often enforced.
What should you look for before signing?
- How long does it last, and over what area?
- Does it apply to telehealth, which has no geography?
- Does it bar you from seeing clients who seek you out?
- What happens if you're let go, rather than leaving?
- Is there a buyout?
Ask to remove or narrow anything that would block you from earning a living or keep clients from continuing with you.
How ValorWell handles this
ValorWell's contractor arrangement is nonexclusive. Therapists can keep a private practice, other contracts, or other employment. They can leave at any time, with the expectation of clinically appropriate notice so ValorWell can find each client a new clinician.
Important limits
- This isn't legal advice. Non-compete law is state-specific and changing. An employment attorney in your state can review a contract.
- Ethics still apply. Any departure has to protect clients from abandonment.
- Read every contract, including ValorWell's, before you sign.