The U.S. Department of Justice (DOJ) and Federal Trade Commission (FTC) recently released updated Antitrust Guidelines for Business Activities Affecting Workers, setting clear expectations for how antitrust laws protect labor markets and worker rights. At Lee Schwalb LLC, we’re here to help businesses navigate these changes and ensure compliance.
Key Highlights from the Guidelines:
Wage-Fixing and No-Poach Agreements
Agreements between employers not to recruit, hire, or fix wages can lead to criminal charges. This applies regardless of whether the agreement is formal or informal.
Franchise No-Poach Clauses
No-poach agreements in franchise settings—whether between a franchisor and franchisees or among franchisees—are under scrutiny. Such agreements may harm worker mobility and violate antitrust laws.
Information Sharing
Exchanging wage or employment terms with competitors, even indirectly through third parties or algorithms, may be illegal if it suppresses competition.
Non-Compete Agreements
Restrictive non-compete clauses that limit a worker's ability to move between jobs or start competing businesses can violate antitrust laws. These provisions are particularly scrutinized when they restrict market entry or worker mobility.
Other Restrictive Practices
Broad non-disclosure agreements, training repayment provisions, and exit fees are examples of practices that could potentially impede fair competition for labor.
Independent Contractors
The guidelines reaffirm that antitrust laws apply to agreements involving independent contractors, ensuring fair treatment across employment classifications.
False Earnings Claims
Misleading representations about potential earnings for employees or contractors can violate federal laws, impacting both worker expectations and fair competition.
Reporting Violations
The DOJ and FTC encourage individuals to report suspected violations to ensure labor markets remain competitive and open.
Why This Matters
These guidelines emphasize protecting workers from practices that limit job opportunities, suppress wages, or create unfair market conditions. Companies should review employment policies and practices to ensure compliance, especially in areas like hiring agreements, information sharing, and non-compete clauses.
How Lee Schwalb LLC Can Help
Our team has deep experience in employment and antitrust law, providing tailored advice to help businesses adapt to these evolving regulations. Whether you’re revisiting your franchise agreements, employment contracts, or hiring practices, we can guide you toward compliance while protecting your business interests.
Contact us today to ensure your business stays ahead of these critical changes. Together, we can build a workforce environment that thrives on fairness, transparency, and competition.
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