On Feb. 26, 2025, the Chairperson of the Federal Trade Commission (FTC) directed the FTC to form a Joint Labor Task Force. This Joint Task Force—comprised of members from the FTC’s Bureaus of Competition, Consumer Protection, and Economics, and the Office of Policy Planning—is responsible for “rooting out and prosecuting unfair labor-market practices that harm American workers.” As announced, the Joint Task Force intends to prioritize the investigation and prosecution of unfair labor market practices as well as promote research regarding harmful labor market practices to inform the FTC and the public.
While the impact of the Joint Task Force is not immediately clear, its mission aligns with recent agency action, including a recent action brought by the FTC against a company’s alleged use of anticompetitive no-hire agreements.[1] And, on April 14, 2025, the Department of Justice (DOJ) obtained its first ever criminal conviction in a wage-fixing conspiracy alleging labor market harms. Given this uptick in enforcement, coupled with the FTC’s Joint Task Force, companies would be wise to familiarize themselves with the joint Antitrust Guidelines for Business Activities Affecting Workers, issued January 2025.
The chair’s Directive identified 12 unfair labor-market practices that the Joint Task Force should prioritize, including:
- No-poach, non-solicitation, no-hire and noncompete agreements
- Wage-fixing agreements
- Labor-contract termination penalties
- Use of anticompetitive methods to create or maintain significant buyer power in a market for labor
- Collusion or unlawful coordination on DEI metrics
- Conduct that harms gig economy workers
- Deceptive job advertising and job scams
- Deceptive business acquisition and franchise offerings
- Harmful occupational licensing requirements
Notably, despite this increased focus on labor markets, the FTC’s Biden-era rule on employee noncompete agreements has lost momentum. The noncompete rule, which proposed a nationwide ban on nearly every employer noncompete agreement, was enjoined by a Texas District Court in August 2024. See Ryan LLC v. FTC, No. 3:24-cv-00986 (N.D. Tex. Aug. 20, 2024). It is not clear if the FTC will continue its defense, but one thing is clear — state governments are working to fill the gaps. At least five states have already passed some form of noncompete laws, including Utah, Colorado and Wyoming.
- Utah recently passed S.B. 228, a law which restricts “health care services platform[s’]” use of noncompete agreements or otherwise restricting employee mobility in the industry. This law—effective as of May 7, 2025—was enacted to ensure that platform-based services, through which a health care worker may accept a shift to perform a health care service or role, do not limit health care services within the state.
- Colorado has banned all employee noncompete agreements except in certain limited circumstances, namely, those for “highly compensated” employees (employees earning more than approximately $130,000 in 2025). On May 8, 2025, however, the Colorado Legislature introduced a new bill that would eliminate this exception for noncompetes that restrict the practice of medicine, advanced practice registered nurses or dentistry in the state.
- Wyoming Statute § 1‑23‑108 will be effective July 1, 2025. That law will ban most noncompete contracts signed on or after the effective date, with several key exceptions. For example, noncompete agreements can still apply to “executive and management personnel and officers” and their professional staff. Notably, this law does not define these terms, leaving employers to determine which employees fall under this exception. Additionally, employers can still utilize noncompete agreements entered into as part of the sale of a business and to protect trade secrets. But noncompete agreements with physicians are banned outright.
Employers can still rely on noncompete provisions to protect their business interests in many states. But companies should stay apprised of this ever-changing statutory landscape, especially those with employees residing and working in multiple states. Employers should contact counsel to implement or revise noncompetes on a state-by-state basis.
Irrespective of the fate of the FTC ban on non-competes, the Joint Task Force’s prosecutorial efforts and recent state legislation make clear that employers can expect the states and the FTC to vigorously investigate what they see as unfair labor market practices. If you have questions about how this practice may impact your business, please contact any member of Parson’s antitrust group.
[1] Decision and Order, In the Matter of Planned Building Services, Inc., et al., FTC Docket No. C-4816 (Jan. 6, 2025), available at https://www.ftc.gov/system/files/ftc_gov/pdf/2410029PlannedCompaniesOrder.pdf.
