FTC & DOJ Issue Antitrust Guidelines to Protect Workers from Harmful Business Practices

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) recently released updated antitrust guidelines for business activities affecting workers. The announcement, made on January 16, 2025, replaces the 2016 Antitrust Guidance for Human Resource Professionals and highlights a renewed focus on safeguarding workers' rights through rigorous enforcement of competition laws.

“For more than a century, the antitrust laws have protected workers from unlawful schemes, abuses of bargaining power, and restrictions on their mobility,” said Acting Assistant Attorney General Doha Mekki of the DOJ’s Antitrust Division. “The Antitrust Division will continue to work with its federal and state partners to ensure the economic freedom and opportunity of American workers and their families.”

This updated guidance reflects the agencies’ broader mission to ensure labor markets remain competitive and open, enabling workers to enjoy better wages, benefits, and working conditions. It also underscores the economic benefits of vibrant labor markets, which fuel innovation and business growth.

The new guidelines provide detailed insights into how the DOJ and FTC assess antitrust risks in labor markets. They highlight several business practices that could trigger enforcement actions:

• Wage-Fixing Agreements: Explicit agreements between employers to fix wages are a direct violation of antitrust laws and may result in criminal liability.
• No-Poach Deals: Agreements between companies not to hire or recruit each other’s employees harm workers by limiting their job mobility and negotiating power.
• Coercive Noncompetes: Overly restrictive noncompete clauses that stifle worker mobility are flagged as potentially unlawful.
• Information Sharing: The exchange of sensitive wage or employment data among competitors is scrutinized as a practice that could suppress wages and benefits.
• False Earnings Claims: Misleading statements about potential earnings can distort labor markets and may constitute unfair competition.

The guidelines also provide real-world examples and past enforcement cases to help businesses understand what constitutes a violation, aiming to provide clarity and deter harmful practices.

A Joint Enforcement Effort

FTC Chair Lina M. Khan emphasized the agencies’ commitment to robust enforcement: “The antitrust laws protect all Americans, including workers, from illegal monopolization, collusion, and unfair methods of competition. These guidelines provide clarity to businesses about the practices that can violate the law—from agreements between firms to fix workers’ wages to coercive noncompetes.”

The guidelines encourage workers, employers, and the public to report potential antitrust violations, offering clear instructions for submitting complaints. By increasing awareness and accessibility, the agencies hope to foster a more equitable labor market.

Diverging Views & Debate

Not everyone agrees with the approach. The FTC approved the guidelines in a narrow 3-2 vote, with Commissioners Andrew N. Ferguson and Melissa Holyoak dissenting. Their dissent reflects ongoing debates about the scope of antitrust enforcement and its implications for businesses navigating complex labor market dynamics.

This collaboration between the FTC and DOJ signals a critical step in modernizing antitrust enforcement to address contemporary labor market challenges. By targeting wage-fixing, no-poach agreements, and other anticompetitive practices, the agencies are sending a message that workers' rights and economic freedom are non-negotiable priorities in the quest for a fair and competitive economy.

For those impacted by restrictive practices—or businesses seeking clarity on compliance—the guidelines represent a valuable resource in navigating the evolving labor market landscape.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.