New administration continues emphasis on antitrust enforcement in labor markets

The Federal Trade Commission (FTC) has signaled it intends to continue prioritizing antitrust enforcement in labor markets, with a sustained focus on protecting workers from unfair and anticompetitive practices. On February 26, 2025, FTC’s new Chairman Andrew N. Ferguson issued a memorandum¹ and press release² calling for the creation of an internal Joint Labor Task Force to address deceptive, unfair and anticompetitive labor market practices.  

The task force is to consist of “at least three” representatives from each of the FTC’s Bureaus of Competition, Consumer Protection, Economics and one from the Office of Policy Planning. The task force will meet at least monthly to assess ongoing labor matters and report quarterly to Ferguson. The initiative underscores the FTC’s commitment to addressing labor market harms and actively looking for opportunities to exercise its investigative and enforcement authority. The task force is also responsible for harmonizing bureau investigation procedures and developing information-sharing protocols.

Expanded scope of labor market scrutiny

The FTC’s memorandum outlines a broad range of “unfair or deceptive” labor market practices that fall within the FTC’s jurisdiction and subject to scrutiny. Many are familiar and consistent with the agency’s existing enforcement targets, such as no-poach, non-solicitation, no-hire, wage-fixing and noncompete agreements. The FTC’s inclusion of collusion on “DEI metrics,” harm to “gig economy workers,” occupational licensing requirements and “job scams” as potential unfair, deceptive or anticompetitive practices suggests an expansion of the FTC’s review in response to a dynamic labor market and political priorities.

Aggressive enforcement continues

The memo aligns with Chairman Ferguson’s recent announcement that the 2023 Merger Guidelines will continue to guide the agency’s merger analysis,³ including the guidelines’ new emphasis on labor market considerations such as wages, employment opportunities and worker mobility, in merger analyses. 

Some may be skeptical of Ferguson’s commitment to aggressive enforcement of antitrust laws to labor practices, given that he dissented to the FTC’s now-enjoined rule banning Non-Compete Agreements⁴ as well as the recent FTC/DOJ joint “Antitrust Guidelines for Business Activities Affecting Workers.”⁵ The new task force is only made up of FTC personnel and does not include DOJ representatives. So although FTC says it will continue to scrutinize anticompetitive labor practices, the approach may be more targeted under Ferguson’s FTC.

Key takeaways for clients

The establishment of the Joint Labor Task Force signals a coordinated enforcement approach by the FTC. Businesses should:

• Review labor practices: Evaluate current agreements that are more likely to draw scrutiny, particularly no-poach agreements and aggressive non-competes. 
• Monitor merger activity: Be prepared for heightened scrutiny of labor market effects in merger reviews, particularly in industries with concentrated labor markets or unionized workforces.
• Stay informed: Keep abreast of FTC guidance and enforcement actions, as the task force’s work may lead to new regulatory developments.

1 Memorandum, Directive Regarding Labor Markets Task Force (Feb. 26, 2025)

2 Press Release, FTC Launches Joint Labor Task Force to Protect American Workers (Feb. 26, 2025)

3 Leah Nylan, Trump FTC Pledges to Keep Aggressive Merger Enforcement, Bloomberg (Feb. 24, 2025) 

4 Andrew N. Ferguson, Dissenting Statement In the Matter of the Non-Compete Clause Rule (June 28, 2024)

5 Andrew N. Ferguson, Dissenting Statement Regarding the Antitrust guidelines for Business Activities Affecting Workers (January 16, 2025)