FTC and Department of Labor Sign MOU to Protect Workers

The FTC and the Department of Labor (DOL) recently signed a Memorandum of Understanding (MOU) to strengthen the agencies’ partnership in efforts to protect and promote competition in labor markets and the welfare of workers in America.

The MOU aims to protect workers harmed by, or at risk of harm by, unfair methods of competition and unfair or deceptive acts or practices such as collusive behavior; use of business models to evade legal accountability (e.g., misclassification of employees); illegal claims and disclosures about earnings and costs associated with work; imposition of one-sided and restrictive covenant provisions (e.g., non-compete and non-disclosure agreements); the extent and impact of labor market concentration; and the impact of algorithmic decision making on workers.  The MOU outlines the procedures for coordination and information sharing between the FTC and DOL.

The MOU went into effect on August 30, 2023, and it expires five years from the effective date, unless terminated by either agency or renewed by written agreement.