The Federal Trade Commission (FTC) and the Department of Justice Antitrust Division (DOJ) have jointly released new antitrust guidelines focused on business practices impacting workers. These guidelines replace the previous 2016 Antitrust Guidance for Human Resource Professionals.
The new guidelines aim to clarify how the FTC and DOJ evaluate whether certain business practices affecting workers breach antitrust laws. They emphasize that competition among employers can benefit workers by improving wages, benefits, and working conditions. Open markets for recruiting and retaining workers are also highlighted as beneficial for business innovation and productivity.
"Business practices may violate the antitrust laws when they harm competition among employers, which can lead to worse outcomes for workers and the broader economy," the guidelines state.
FTC Chair Lina M. Khan remarked, "The antitrust laws protect all Americans, including workers, from illegal monopolization, collusion, and unfair methods of competition." She added that these guidelines offer clarity on unlawful practices such as wage-fixing agreements or coercive noncompetes.
Specific types of agreements that could infringe upon antitrust laws include noncompetes or sharing wage information among competing companies. The guidelines also cover activities potentially leading to criminal liability, such as wage-fixing or no-poach agreements. Additionally, false claims about potential earnings might contravene federal law.
Information is provided within the guidelines on reporting possible antitrust violations to both agencies.
The joint guidance was approved by a 3-2 vote from the Commission, with Commissioners Andrew N. Ferguson and Melissa Holyoak dissenting. Commissioner Ferguson's dissenting statement was joined by Commissioner Holyoak.
The FTC continues its role in developing policies affecting competition, consumers, and the U.S. economy while ensuring consumer protection through alerts and educational resources.