FTC Joint Labor Task Force Formed to Protect American Workers //

In a significant move to combat deceptive, unfair, and anticompetitive labor practices, the Federal Trade Commission (FTC) has announced the formation of a Joint Labor Task Force.

This initiative, led by FTC Chairman Andrew N. Ferguson, brings together the Bureau of Competition, Bureau of Consumer Protection, Bureau of Economics, and Office of Policy Planning to investigate, prosecute, and develop policies aimed at protecting American workers.

The directive acknowledges that a fair and competitive labor market is crucial to the country’s economic success. The memorandum highlights that many labor practices harm workers’ ability to earn fair wages, advance their careers, and find better opportunities. The FTC has therefore committed to taking strong enforcement actions against businesses engaging in anticompetitive labor market conduct.

Key Areas of Focus

The Joint Labor Task Force will prioritize the investigation and prosecution of deceptive and unfair labor practices, including:

1. No-Poach, Non-Solicitation, and No-Hire Agreements

These agreements restrict workers from seeking better employment by preventing businesses from hiring competitors’ employees. Courts have ruled that these agreements can be per se violations of competition laws.

2. Wage-Fixing Agreements

Employers who collude to fix wages artificially lower employee earnings. This is a severe violation of competition laws and will be a major focus of the task force.

3. Noncompete Agreements

Many employers use overly restrictive noncompete clauses to prevent workers from switching jobs within the same industry. These agreements limit career mobility and suppress wages, making them a priority for FTC enforcement.

4. Deceptive Job Advertising and Misleading Business Opportunities

The task force will target misleading job postings that lure job seekers with false promises of high wages or benefits. Additionally, deceptive business opportunities and misleading franchise offerings that trick individuals into investing in fraudulent ventures will be investigated.

5. Collusion on DEI Metrics

The FTC is also examining unlawful coordination on Diversity, Equity, and Inclusion (DEI) hiring metrics. If companies coordinate in ways that unfairly exclude workers based on race, sex, or sexual orientation, they may be violating competition laws.

6. Gig Economy Exploitation

The task force will address unfair and deceptive practices targeting gig workers, ensuring that independent contractors receive fair pay and treatment.

7. Harmful Occupational Licensing Requirements

Certain licensing restrictions create unnecessary barriers to entry for workers in specific industries. The FTC will investigate whether these requirements are being used to limit competition unfairly.

8. Job and Online Work Scams

The FTC will crack down on fraudulent job placement schemes and online task scams that trick job seekers into paying fees or performing unpaid labor.

9. Labor Market Monopsonies

In some regions, a single employer or group of employers may dominate the labor market, reducing worker bargaining power. The task force will examine these cases to ensure fair competition.

Why This Matters for American Workers

The FTC memorandum underscores that unfair labor practices have widespread negative effects on the U.S. economy.

Key concerns include:

✔ Lower Wages – Workers earn less when competition among employers is restricted.
✔ Reduced Job Mobility – Unfair agreements lock employees into jobs and prevent career advancement.
✔ Increased Worker Exploitation – Deceptive and anticompetitive practices harm workers across all industries.
✔ Economic Instability – Suppressing wages and employment opportunities harms economic growth and consumer spending.

FTC’s Strategy and Next Steps

To enforce fair labor standards, the FTC has directed its Bureaus to work together under the Joint Labor Task Force.

Key responsibilities include:

• Prioritizing labor market investigations and prosecutions under consumer protection and competition laws.
• Coordinating enforcement actions across multiple FTC divisions.
• Developing research and data-sharing initiatives to identify labor market abuses.
• Engaging in public outreach to educate workers on their rights and encourage reporting of unfair practices.
• Identifying legislative and regulatory opportunities to promote fair labor competition.

The task force will meet monthly to assess ongoing investigations and report quarterly to the FTC Chairman.

Conclusion

The launch of the FTC Joint Labor Task Force marks a major step toward protecting American workers from unfair employment practices. By targeting wage-fixing, noncompete agreements, deceptive job advertising, and labor market monopolization, the FTC aims to restore fairness and transparency to the labor market.

To read Chairman Ferguson’s memorandum, click “Directive Regarding Labor Markets Task Force.”

Take Action and Protect Yourself From Antitrust Violations – Know Your Rights 

The antitrust laws prohibit harmful, anticompetitive practices to promote fair competition and better job opportunities.

If you believe your employer has been engaging in unlawful wage-fixing, no-poach agreements or other prohibited conduct, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], for a free, no-obligation evaluation of potential legal claims. 

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm dedicated to protecting investors and consumers from fraud and misconduct. Our attorneys have served as Lead or Co-Lead Counsel in major securities cases, recovering over $10 billion for institutional and individual investors. We litigate securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations, while also representing whistleblowers and advocating for victims of data breaches, consumer fraud, vehicle defects, employment law violations, retirement plan mismanagement, and other corporate and business misconduct. With a results-driven approach, we pursue justice and substantial recoveries for those we represent.

KLF’s class action legal services are provided on a contingency-fee basis, meaning clients are not responsible for any fees or litigation expenses. 

PHONE

Tel: 215-792-6676

EMAIL

[email protected]