FTC and DOJ Jointly Issue Antitrust Guidelines on Business Practices that Impact Workers

Purpose

The Federal Trade Commission (FTC) and the Department of Justice Antitrust Division (DOJ) have jointly issued antitrust guidelines for business activities affecting workers. The purpose of these guidelines is to provide clarity on how both agencies assess whether business practices affecting workers violate the antitrust laws, replacing the 2016 Antitrust Guidance for Human Resource Professionals.

These guidelines aim to protect American workers and businesses from illegal monopolization, collusion, and unfair methods of competition by outlining specific types of agreements or business practices that may violate the antitrust laws. The guidelines are intended to promote competition among employers, which can lead to better wages, benefits, and working conditions for employees.

Effects on Industry

The joint FTC-DOJ guidelines are expected to have a significant impact on various industries, particularly those involved in human resources, employment law, and business practices. These effects may include:

• Increased scrutiny of noncompete agreements and their potential impact on competition among employers.
• Greater attention to wage-fixing agreements and their consequences for workers’ earnings.
• Enhanced awareness of the importance of open markets for recruiting and retaining employees, leading to increased innovation and productivity.

As a result, businesses must reassess their human resources practices to ensure compliance with these guidelines. This may involve revising noncompete agreements, reviewing wage-fixing policies, or implementing strategies to promote competition among employers.

Relevant Stakeholders

The joint FTC-DOJ guidelines affect various stakeholders, including:

• Businesses: Employers and employees will need to familiarize themselves with the new guidelines and adapt their practices accordingly.
• Human Resources Professionals: HR experts must ensure that their organizations’ employment policies comply with these guidelines.
• Employees: Workers can benefit from increased competition among employers, leading to better wages, benefits, and working conditions.

It is essential for all stakeholders to understand the implications of these guidelines and take necessary steps to comply with them.

Next Steps

To comply with these guidelines, businesses should:

• Review their human resources policies and practices to ensure compliance.
• Revise noncompete agreements to align with the guidelines’ requirements.
• Implement strategies to promote competition among employers, such as open markets for recruiting and retaining employees.

Businesses must also be prepared to report potential antitrust violations to the FTC and DOJ. The Commission vote approving the joint guidance was 3-2, with Commissioners Andrew N. Ferguson and Melissa Holyoak dissenting. Commissioner Ferguson issued a dissenting statement joined by Commissioner Holyoak.

Any Other Relevant Information

The Federal Trade Commission (FTC) develops policy initiatives on issues affecting competition, consumers, and the U.S. economy. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

Contact Information: Media Contact Victoria Graham, Office of Public Affairs, 415-848-5121.