Veterinary Non-Compete Agreements After the FTC Rule: What Still Applies and What to Negotiate

Few contract clauses cause more anxiety for veterinarians than the non-compete. It decides whether you can keep working in your town if you leave a job, and veterinarians have felt that more than most professions: when the Federal Trade Commission asked for public comment on non-competes, veterinarians were among the most active groups to respond.

The federal picture has now settled, and not in the way many associates hoped. This guide explains where things stand, how veterinary non-competes are usually written, and what to negotiate. It is not legal advice. Non-competes are governed by state law, and an attorney in your state should review any agreement before you sign.

What happened to the FTC ban

• April 2024: the FTC issued a rule that would have banned nearly all post employment non-compete agreements nationwide, affecting an estimated 30 million workers.
• August 2024: a federal court in Texas set the rule aside, finding the FTC lacked authority to issue it. The rule never took effect.
• September 5, 2025: the Commission voted 3 to 1 to drop its appeals and accept that decision.

The FTC now says the rule is not in effect and not enforceable. Instead, it will bring case by case actions against non-competes it considers anticompetitive. It cited one such action in the pet industry, against a pet aftercare company. Former FTC Chair Lina Khan had noted that veterinarians submitted hundreds of comments describing litigation, lost jobs and long commutes caused by non-competes.

The practical result: non-competes are governed by state law again, and they are enforceable in many states.

State law is what matters

States take very different approaches. Some examples, which you should confirm for your own state:

• California voids most employee non-competes.
• Minnesota banned new employee non-competes from July 1, 2023.
• Several states, including Illinois, Washington and Colorado, allow non-competes only for workers above an earnings threshold, and some require notice before signing.
• Many states enforce non-competes that are "reasonable" in time, distance and scope, and courts may narrow an overbroad clause rather than strike it.

Because the rules differ so much, the same clause can be void in one state and enforceable across the border.

How veterinary non-competes are written

The radius

A typical clause bars you from practicing within a set distance of the hospital for a set time after you leave. Things to read closely:

• Distance from where? One hospital, or every hospital the employer owns? Corporate groups sometimes draw the radius around every location you worked at, or every location in the group, which can cover a whole metro area.
• How is it measured? Straight line miles or driving distance.
• What counts as practicing? All veterinary work, or only the same type? A general practice non-compete that also bars emergency or relief work, or shelter medicine, is broader than it needs to be.

The duration

Common terms run one to three years. Longer terms are harder to justify and more likely to be challenged.

Non-solicitation

Separate from the non-compete, a non-solicit bars you from soliciting the practice's clients or employees after you leave. These are more widely enforced than non-competes. Read whether it bars only active solicitation or also accepting clients who follow you on their own.

Damages

Some agreements set liquidated damages, a fixed amount you would owe for a breach. Know the number before you sign.

Sale of the practice

Ask whether the agreement can be assigned to a buyer if the practice is sold. Many can, so your restriction may end up protecting a company you never agreed to work for.

What associates should negotiate

Non-competes are negotiable, especially for experienced veterinarians and in tight labor markets. Reasonable asks:

1. Shrink the radius and measure it from the hospital where you primarily work.
2. Shorten the time.
3. Limit the scope to the type of practice you are actually doing.
4. Carve out relief, emergency, shelter and teaching work.
5. Make it void if you are let go without cause, or if the practice is sold.
6. Tie it to consideration, such as a signing bonus you would forfeit rather than a ban on working.

Our guide to questions to ask before accepting a veterinary job covers the rest of the offer, and veterinarian production pay explained covers compensation clauses.

What practice owners should consider

A narrow, fair restriction is more likely to be enforced and less likely to cost you good candidates.

• Protect what you can justify: client relationships and staff, rather than a doctor's right to work.
• Prefer a non-solicit to a broad non-compete where it does the job.
• Keep the radius and duration modest, and match the scope to the role.
• Know your state's law, including any earnings thresholds and notice rules.

A practice known for heavy non-competes may find it harder to recruit. When candidates compare offers, a fair clause is part of the pay.

How Zuse helps

On Zuse Talent, veterinarians browse veterinarian jobs and relief veterinarian jobs with pay shown, so you can compare offers before you negotiate.

Sources

• AVMA News, FTC vacates noncompete rule, shifts to case-by-case enforcement (September 30, 2025)
• Federal Trade Commission, Noncompete Rule and press release of September 5, 2025

This article is general information, not legal advice. Have an attorney licensed in your state review any non-compete.

FAQ

Is the FTC non-compete ban in effect?

No. A federal court set it aside in August 2024, and the FTC dropped its appeals in September 2025. Non-competes are governed by state law again, and the FTC challenges individual agreements case by case.

Are veterinary non-competes enforceable?

It depends on your state. Some states void most non-competes, some allow them only above an earnings threshold, and many enforce ones that are reasonable in time, distance and scope.

What is a typical veterinary non-compete radius?

It varies widely. Read where the radius is measured from, whether it covers every hospital the employer owns, and what kinds of practice it bars.

Can I negotiate a non-compete?

Often, yes. Common asks are a smaller radius, a shorter term, a narrower scope, carve outs for relief or emergency work, and making it void if you are let go without cause.

What is the difference between a non-compete and a non-solicit?

A non-compete restricts where you can work. A non-solicit restricts you from soliciting the practice's clients or staff. Non-solicits are more widely enforced.