HONEST WORK FOR HONEST PAY ALWAYS
Department of Justice (DOJ) and the Bureau of Competition at the Federal Trade Commission (FTC) recently released a joint statement reaffirming their stance for promoting healthy and fair competition for workers in the United States during the coronavirus pandemic. Together, the DOJ and FTC announce they will not hesitate to enforce the historic antitrust laws against anyone seeking to exploit the COVID-19 outbreak as a means to obtain an unfair advantage by engaging in anticompetitive conduct in the labor markets.
As we see more news reports of businesses resorting to desperate measures to keep their doors open during this outbreak, like one Austin-based employer who docked the paychecks of its employees receiving Economic Impact Payments, the two agencies want the United States public to know that their keeping a close watch out for any employers, recruiters, or staffing companies that might engage in collusion or otherwise anticompetitive conduct that injures American workers. The DOJ and FTC provide examples of such anticompetitive conduct, such as any agreements that eliminate or reduce competition for wages, benefits, working hours, or other terms of employment, including the recruiting, soliciting, hiring, or retention of workers.
“The Antitrust Division will not tolerate companies and individuals who use COVID-19 to harm competition that cheats payroll and non-payroll workers,” announced Assistant Attorney General Makan Delrahim of the DOJ’s Antitrust Division. “This includes doctors, nurses, first responders, and those who work in grocery stores, pharmacies, delivery and distribution networks, and warehouses, among other essential service providers on the front lines of addressing the crisis. Even in times of crisis, we choose a policy of competition over collusion. The division will use its enforcement authority to ensure that companies and individuals who distort the free market for labor are held to account.”
“Many American workers are under a tremendous amount of stress because of COVID-19, and that includes essential workers and first responders,” stated FTC Chairman Joe Simons. “We will not stand for any collusion among employers that would deprive workers of competitive compensation for their hard work.”
The Bureau of Competition at the FTC has been regularly commencing enforcement actions seeking to prohibit unlawful no-poach and wage-fixing agreements, as well as unlawful agreements to exchange competitively sensitive information regarding employees, such as salaries and compensation data. Some types of agreements, like a wage-fixing or no-poach agreement, are a federal crime punishable by fine and incarceration, while others may be punishable by heavy monetary penalties, even absent a collusive agreement. Even conduct taken by one employer, absent agreement or cooperation with any other entity, may be anticompetitive and punishable by civil penalties, if that conduct harms competition in the labor market. The FTC warms those significant fines may also extend to individuals and companies involved in the recruiting, hiring, placement, or retention of workers.
The FTC has made information and resources available that can help businesses and individuals better understand the DOJ and FTC’s enforcement policy behind the antitrust laws.
If you, friends, coworkers, or a family member experience anything that appears unfair when it comes to the hiring, retention, compensation, or other employment practices due to the coronavirus outbreak, please visit the website of the Department of Justice or FTC to report the activity and obtain more information.
