The Federal Trade Commission (FTC) and the United States Department of Labor (DOL) have announced a new memorandum of understanding (MOU) to enhance their collaboration in protecting workers and combating unfair labor practices [0e128792]. The MOU outlines the specific areas of mutual interest for the two agencies, including labor market concentration, one-sided contract terms, and the impact of the gig economy on workers. This partnership builds on the FTC's previous collaboration with the National Labor Relations Board (NLRB) and its strong policy statement related to the gig economy [0e128792].
The MOU allows the FTC and DOL to share information, provide training, and partner on investigations and enforcement activities. The agencies will work together to address collusive behavior, business models designed to evade legal accountability, illegal claims and disclosures about earnings and costs associated with work, one-sided and restrictive covenant provisions, labor market concentration, and the impact of algorithmic decision-making on workers [0e128792].
This partnership between the FTC and DOL demonstrates their commitment to promoting competitive US labor markets and ending unfair and deceptive practices that harm workers. It also aligns with the FTC's efforts to regulate employment contracts, including a proposed rule to ban noncompete clauses [0e128792].
Employers are advised to review their employment agreements and policies to ensure compliance with the FTC's latest initiatives [0e128792].
In related news, the National Labor Relations Board's (NLRB) 2023 Rule regarding joint-employer relationships under federal labor law has been met with uncertainty and legal challenges. The U.S. Chamber of Commerce has argued that the rule is unlawfully overbroad and would negatively affect relationships between franchisors-franchisees, contractors-subcontractors, and staffing agencies-user employers [68707d46]. The federal court has since blocked the rule, adding further uncertainty to the landscape of joint-employer relationships [68707d46].
The FTC and DOL partnership takes on added significance in light of the uncertainty surrounding the NLRB's Joint-Employer Rule. As the FTC and DOL work together to protect workers and combat unfair labor practices, employers should stay informed about the evolving legal landscape and ensure compliance with both agencies' initiatives.