The Federal Trade Commission (FTC) has issued a policy statement clarifying that independent contractors, including gig workers, are protected from antitrust liability when engaging in collective bargaining and organizing activities. This includes efforts to secure better compensation and job conditions.
According to the FTC's statement, the Commission will not challenge collective actions by independent contractors and gig workers, such as rideshare and food delivery drivers, who provide labor services and seek improved working conditions. These activities are exempt under antitrust statutes.
"Companies increasingly rely on gig workers and independent contractors. As more of these workers consider unionizing to secure better pay and conditions, the FTC is making clear that the antitrust laws do not stand in the way of their efforts to collectively organize or bargain," said FTC Chair Lina M. Khan.
Hannah Garden-Monheit, Director of the FTC’s Office of Policy Planning, stated: "Gig workers shouldn’t be forced to accept low wages or poor working conditions just because they’re independent contractors. The FTC’s policy statement today makes clear that the antitrust laws do not prevent gig workers from collectively organizing to fight for a better living."
The Clayton and Norris-LaGuardia Acts protect workers' rights to organize and collectively bargain over wages and labor conditions from antitrust liability. However, with more workers classified as independent contractors or gig workers, there is a complex legal landscape regarding their protection under these exemptions.
The FTC's policy statement asserts that all workers engaged in protected bargaining or organizing activity are covered by the antitrust exemption even if they lack a formal employer-employee relationship with the firm they negotiate with regarding compensation or working conditions. This protection is based on statutory text, existing case law, and reflects the original intent of labor exemptions.
Excluding all independent contractors from labor exemption protections could allow employers to exploit differences in antitrust liability protection between worker categories. Businesses might classify (or misclassify) their workforce as independent contractors to suppress wages while gaining an unfair advantage over competitors offering better compensation.
The Commission approved this policy statement with a 3-2 vote; Commissioners Andrew N. Ferguson and Melissa Holyoak opposed it. Commissioner Ferguson issued a dissenting opinion joined by Commissioner Holyoak.
The Federal Trade Commission continues developing policies affecting competition, consumers, and the U.S. economy while maintaining transparency through various communication channels like social media updates and consumer alerts.
