The Federal Trade Commission (FTC) and the U.S. Department of Labor (DOL) have joined forces to protect workers from unfair practices, according to a new agreement signed by both agencies. The partnership aims to promote competitive labor markets and put an end to deceptive and unlawful acts and practices that harm workers.
The memorandum of understanding (MOU) signed on September 21, 2023, allows the FTC and DOL to collaborate on important labor issues, including market concentration, one-sided contract terms, and challenges posed by the "gig economy." The goal is to foster fair and competitive labor markets by addressing anticompetitive and unfair business practices.
FTC Chair Lina M. Khan emphasized the significance of this partnership, stating that it is part of a broader government initiative to crack down on illegal activities that undermine the labor market. By working together, the agencies can tackle conduct that suppresses wages, limits access to benefits and good working conditions, and hinders economic liberty for workers.
Solicitor of Labor Seema Nanda expressed confidence that this joint effort would create a more equitable labor market. Nanda stressed that a level playing field would benefit not only workers but also employers who operate within the boundaries of the law.
The partnership between the FTC and DOL will focus on various areas of concern, including collusive behavior between companies, business models that evade legal accountability, misleading claims about potential earnings, and restrictive contract provisions such as non-compete clauses. The aim is to identify and prosecute illicit business practices that exploit vulnerabilities in the labor force.
This collaboration aligns closely with the President's Executive Order on Competition, which emphasizes the need for robust enforcement of antitrust laws, particularly in labor markets. The partnership marks a significant step towards addressing long-standing issues in the U.S. labor market, with the ultimate goal of fostering fair and competitive labor markets for all workers.
