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]

The overtime pay rule reversal in November 2024 means many workers who would have become eligible for overtime pay under a new Department of Labor (“DOL”) rule are no longer covered.

The DOL had planned to raise the salary threshold for overtime eligibility, expanding overtime protections to more salaried employees. However, a court decision overturned this rule, keeping the threshold at its lower 2019 level and limiting workers’ access to overtime pay.

What Happened with the Overtime Pay Rule Reversal?

The DOL’s 2024 Overtime Rule was set to raise the salary threshold to $43,888 in July 2024 and $58,656 in January 2025, making more salaried workers eligible for overtime pay. However, on November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated this rule, meaning it’s no longer in effect. Now, the threshold is back to $35,568 annually from the 2019 rule.

This reversal is significant because it affects how many workers qualify for overtime. If you earn less than $35,568, you’re automatically entitled to overtime for hours over 40 per week. But if you earn more, your eligibility depends on your job duties.

How Does The Overtime Pay Rule Reversal Affect You?

If you earn above $35,568, your employer might classify you as exempt from overtime, but this isn’t automatic. You must meet specific job duties, such as managing others or making key decisions, to be exempt. For example, if you’re a salaried worker earning $40,000 and your job is mostly routine, you might still be entitled to overtime pay.

The overtime pay rule reversal could possibly lead to misclassification, where employers wrongly label workers as exempt, denying them overtime.

What Can You Do if You are Wrongfully Denied Overtime?

If you think you’re being denied overtime pay, consider taking these steps:

• Track Your Hours: Document any overtime you work without extra pay and any related communications.
• Check Your Status: Assess whether your job involves executive, administrative, or professional duties. If not, you might be non-exempt.
• Consult a Legal Expert About Filing a Claim: Class action lawsuits can help if many workers face similar violations. Contact a law firm which specializes in wage and hour litigation for a legal consultation and, importantly, to ensure compliance with FLSA’s statute of limitations (typically two years, extendable to three for willful violations).

The DOL’s 2024 Overtime Rule: Context & Legal Challenge

On April 26, 2024, the DOL published a final rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.”

This rule aimed to update the Fair Labor Standards Act (FLSA) by increasing the salary threshold for overtime exemptions. The phased implementation included:

• Effective July 1, 2024, raising the threshold to $43,888 annually ($844 per week).
• Effective January 1, 2025, further increasing it to $58,656 annually ($1,128 per week).
• Additionally, the highly compensated employee threshold was set to rise to $132,964 on July 1, 2024, and $151,164 on January 1, 2025, with automatic updates every three years starting July 1, 2027.

It was estimated to extend overtime protections to millions of workers, particularly those earning between the previous threshold of $35,568 and the proposed new levels.

See also: Final Rule: Restoring and Extending Overtime Protections and DOL April 23, 2024 News Release.

Court Decision and Overtime Pay Rule Reversal

On November 15, 2024, U.S. District Judge Sean Jordan, Eastern District of Texas, blocked the Biden Administration rule expanding the ability for overtime pay for millions more salaried workers in the United States by ruling that the Department of Labor could not prioritize employee wages over job duties when determining eligibility. Judge Blocks Biden administration’s rule to expand overtime pay for millions.

This decision meant that the rule, including the July 1, 2024 increase, was effectively nullified retroactively.

As a result, the DOL reverted to enforcing the 2019 rule’s thresholds:

• Minimum salary level: $684 per week, equivalent to $35,568 annually.
• Highly compensated employee threshold: $107,432 annually.

Lawsuits regarding the 2024 final rule are currently pending in two other federal district courts, and the United States has filed a notice of appeal from the November 15 decision.

Implications for Workers: Are You Affected?

The overtime pay rule reversal has significant implications for workers, particularly those earning between $35,568 and $43,888, who would have been automatically eligible for overtime pay under the 2024 rule’s first phase.

Now, their exemption status depends on meeting certain requirements of the FLSA’s job duties test for executive, administrative, and professional employees, including:

• Executive Exemption: Managing the enterprise or a department, directing employees, and have the authority to hire and fire other employees.
• Administrative Exemption: Performing office or non-manual work directly related to management or general business operations, with discretion and independent judgment.
• Professional Exemption: Work requiring advanced knowledge, typically in a field of science or learning, and involving consistent exercise of discretion.

For example, a store manager earning $40,000 who primarily handles routine tasks like stocking shelves might not meet these criteria and should be non-exempt, entitled to overtime pay.

Employers, however, might misclassify such workers as exempt, especially in the confusion following the rule reversal, leading to potential wage theft.

Misclassification Risks and Wage Theft

The lower salary threshold increases the risk of misclassification, where employers label workers as exempt without meeting the job duties test.

Signs of potential misclassification include:

• Working over 40 hours weekly without additional compensation.
• Performing routine tasks without managerial or decision-making authority.
• Employers not tracking hours worked, assuming salaried status exempts overtime requirements.

Class Action Lawsuits as a Remedy

Employees can file lawsuits under the FLSA to recover unpaid minimum wages and overtime. Successful cases have resulted in significant settlements:

• Google LLC Settlement (2023): A $8.4 million settlement for 6,517 workers, addressing miscalculated overtime pay rates, covering violations from December 22, 2017 to June 5, 2022. Google to pay $8.4 million in overtime settlement | HR Dive.
• Rocket Mortgage Settlement (2023): A $3.5 million settlement for mortgage bankers claiming unpaid overtime, filed in January 2023. Rocket Mortgage inks $3.5M overtime pay settlement with bankers.

Have You Been Wrongfully Denied Overtime Pay?

The overtime pay rule reversal has created uncertainty, potentially leaving workers vulnerable to misclassification and wage theft. Your rights, however, under the FLSA remain protected. If you believe you’ve been wrongly denied overtime pay by your employer, Kehoe Law Firm is here to help.

Our experienced class action attorneys are dedicated to protecting workers’ rights. For a free, no-obligation evaluation of potential legal claims, send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected]. 

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

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a plaintiff-side class action firm, fiercely committed to safeguarding investors and consumers from corporate fraud and misconduct. Nationally recognized, our attorneys have taken the reins as Lead or Co-Lead Counsel in high-profile cases, securing over $10 billion in recoveries for institutional and individual investors and consumers. Through relentless class action litigation, we tackle securities fraud, fiduciary breaches, unfair mergers and acquisitions, and antitrust violations head-on. Beyond that, we champion whistleblowers and fight against data breaches, consumer scams, employment law abuses, retirement plan mismanagement, and deceptive business practices. With a no-nonsense, results-focused approach, we chase down meaningful outcomes—delivering justice and substantial recoveries for those we represent.

PHONE

Tel: 215-792-6676

EMAIL

[email protected]