New Labor Market Task Force Implemented by the FTC Will Prioritize Worker Protections – How it Impacts Texas Employers

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On February 26, 2025, Federal Trade Commission (FTC) Chairman Andrew N. Ferguson issued a directive to form a Joint Labor Task Force, which will consist of at least three members from the Bureau of Competition, the Bureau of Consumer Protection, and the Bureau of Economics, and one member from the Office of Policy Planning. The Task Force is charged with the investigation and prosecution of “deceptive, unfair, or anticompetitive labor market conduct.” With this new labor market task force implemented by the FTC that will prioritize worker protections – how it impacts Texas employers is an important topic to review, so you must be more proactive than ever and ensure vigilance in your monitoring to protect both your business and your workforce.

The Joint Labor Task Force is intended to provide a protocol for the FTC’s Bureaus to share information across the organization and learn and apply best practices for the discovery and investigation of labor market conduct under the FTC’s jurisdiction. An additional goal is to ensure that the FTC is working as one force to act against deceptive, unfair, or anticompetitive conduct within the labor market. Further, the Task Force will promote research on such conduct and communicate with the public, executive branch agencies, and Congress regarding any research findings of significance.

What Should I Expect as a Result of the Task Force’s Formation?

Based on the information available at this time, the Task Force will have a significant impact on employers, including Texas employers. Specifically, employers should be vigilant about the work surrounding:

  • Non-compete agreements
  • New regulations
  • Wage and hiring practices

The focus on non-compete agreements is not a surprise given the FTC’s ongoing work to challenge clauses and full agreements that it believes restrict the ability for workers to change jobs and ultimately keep wages low.

Remember that the Federal Court that blocked the nationwide ban on non-compete agreements was in Texas. The FTC’s current posture regarding that case remains uncertain through at least July 2025, as it has paused its appeal of the Texas ruling. While that decision remains in limbo, state laws continue to govern non-compete agreements, and employers must remain vigilant about compliance with State and local regulations.

The new Task Force will be seeking, investigating, and prosecuting employers who the FTC believes are harming workers through the use of such agreements. The increase in scrutiny means employers must take proactive steps to protect themselves. Employers should also continue to monitor regulatory proposals at all levels to prepare for changes in the implementation of laws.

What Proactive Steps Can I Take?

Knowing that non-compete agreements are at risk, it would be wise to begin to review those agreements or clauses you have in place and to consider whether they can be replaced with confidentiality clauses or agreements that prohibit solicitation. While reviewing those specific clauses and agreements, you may also wish to consider whether any provisions you include in your agreements with employees or contractors include language that could be interpreted to be wage-fixing or prevent worker mobility (i.e., “no poaching” agreements). Any language of these types is likely to be criticized and may be a subject of litigation.

Overall, you need to avoid restrictive hiring practices such as non-compete, wage-fixing, and no-poaching. The FTC is likely to view these practices, even if currently compliant with State and local laws, as anticompetitive. Take time to provide training to your staff, especially human resources personnel and hiring managers, to ensure your practices are in line with regulations and the messaging provided to employees is consistent with those practices.

The best audit is the internal audit, and it is a good time to audit your human resources and hiring practices. Everything from advertising positions to the contracts selected applicants sign will be subject to review. Additionally, company messaging outside of legal documents will matter, and you should take care to ensure that your supervisors and managers are providing information to employees that is consistent with the company’s policies and procedures.

Will my industry really be affected?

The FTC’s Task Force is not specific to any one industry or group of industries. Specifically, the following industries are expected to be immediately impacted by the Task Force’s work:

  • Healthcare
  • Technology
  • Engineering
  • Oil & Gas
  • Legal
  • Financial
  • Retail (including franchises)

These sectors tend to have more scrutiny than others when it comes to fair labor practices.

Scrutiny from the Task Force may result in employment contracts being changed for employees across sectors. Companies will need to evaluate ways of protecting their intellectual property and consider new ways to retain employees. Additionally, mobility of workers is likely to increase, and franchise and other retail businesses need to be prepared to offer job flexibilities not typical in that industry.

Those flexibilities may include employees leaving a business and “taking clients with them.” If an employee is able to port their book of business from one company to another with fewer or no restrictions, industries like legal and financial will need to consider growing business development in new ways, so client loss has less impact. Wage and salary setting is going to need to be compliant with regulations, as always, but it will become more important than ever to be competitive as the Task Force seeks to allow more competition in every space.

How Can I Best Protect My Company?

From known and ongoing issues like the litigation on non-compete agreements to less public and developing issues like salary disclosure requirements, there is a lot moving in the space that the FTC’s Joint Labor Task Force is intended to address. A proactive approach will be critical as the Task Force takes shape and begins to roll out initiatives, encourages new legislation and regulation at the Federal level, and reviews business practices for what they consider to be anti-competitive provisions. Contact the labor and employment attorneys at MehaffyWeber today to evaluate your existing agreements, hiring practices, and confidentiality provisions, and be prepared for the upcoming changes.

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