On January 5, the Federal Trade Commission (FTC or Commission), an agency charged with enforcing federal antitrust laws and protecting competition, proposed a new rule that would prohibit “employers” from imposing non-competes on “workers.” The proposed ban would make it illegal for employers to enter into or attempt to enter into non-compete agreements with workers
HR Personnel (and Employers) Beware: Antitrust Enforcers Warn of Criminal Liability for Compensation, No-Poaching Pacts
Human Resources (HR) personnel are now specifically under the scrutiny of the antitrust enforcement agencies. The Department of Justice (DOJ) and Federal Trade Commission (FTC) are typically known for enforcing antitrust laws against price-fixers and bid-riggers. Recently they announced a new set of targets: anti-competitive agreements between employers related to hiring and compensation. For the first time, these agencies have warned HR personnel and their employers they may be criminally prosecuted for agreeing with other companies to fix employee pay (wage-fixing agreements) or not to recruit each other’s employees (no-poaching agreements). Criminal violations of the antitrust laws are felonies and threaten substantial fines and jail time.
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