Bloomberg Law: FTC Finds Three Firms Engaged in Illegal Noncompete Agreements

January 4, 2023 Media

The Federal Trade Commission found that Prudential Security, O-I Glass Inc., and Ardagh Group SA engaged their workers to strike allegedly illegal noncompete agreements, marking the first time the antitrust regulator ordered companies to refrain from such deals.

“The commission finds that the use of noncompetes by these firms constituted an unfair method of competition and violated Section 5 of the FTC Act,” the agency said Wednesday in a statement.

Labor groups have long called on the FTC to enforce against—and prohibit—noncompete agreements, concerned that they hurt wages and reduce worker mobility.

Wednesday’s action is the latest in a series of moves by the antitrust enforcement agencies to confront alleged labor-market competition law violations. The Justice Department’s antitrust division has brought a series of criminal no-poach cases over the last few years, with mixed results.

“Although we think the name “non-compete” says it all, for too long working people have been denied the freedom to change jobs, negotiate for better pay, and start new businesses under these coercive agreements,” Sarah Miller, executive director of the American Economic Liberties Project, an antitrust and corporate accountability advocacy group, said in a statement.