Employment / 1 min read
The U.S. Department of Labor (DOL) and the Federal Trade Commission (FTC) recently committed to collaborating more closely on legal enforcement efforts. The two agencies signed a memorandum of understanding that took effect August 30, 2023. The agreement enables the agencies to partner on investigative efforts, conduct cross-training for staff at each agency, and share information from investigative files, complaints, and statistical analyses.
The agreement identifies certain areas of mutual concern for both agencies, including:
- Business models designed to evade legal accountability, such as misclassifying employees as independent contractors.
- The imposition of noncompete and training repayment provisions.
- Collusive behavior by companies (Agreements between competitors “if you don’t hire my employees, I won’t hire yours”).
Given this collaboration, employers should pay special attention to:
- How they classify and pay workers.
- How they use noncompetes and training repayment provisions.
- And any agreements between competing companies.