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Law360 (April 13, 2020, 10:08 PM EDT ) The U.S. Department of Justice and the Federal Trade Commission announced Monday that they will be "on alert" for employers, staffing companies and recruiters who engage in anti-competitive conduct in labor markets, like agreements to lower wages or to reduce salaries.
While noting that there may be "unprecedented cooperation" between governments, private businesses and individuals in an effort to protect the public from the coronavirus, the DOJ Antitrust Division and FTC Bureau of Competition warned that the pandemic does not give employers permission to engage in anti-competitive conduct that harms workers.
"Although many individuals and businesses have demonstrated extraordinary compassion and flexibility in responding to COVID-19, and will continue to do so, others may use it as an opportunity to prey on American workers by subverting competition in labor markets," the agencies said. "The division and the bureau will not hesitate to hold accountable those who do so."
Last month, the same agencies offered an expedited process for companies seeking assurances that activities related to combating the spread of COVID-19 don't violate antitrust law.
Companies seeking a DOJ Antitrust Division business review letter or FTC advisory opinion for coronavirus-related conduct "addressing public health and safety" will receive a response within seven calendar days of the agencies getting "all necessary information," according to a joint statement.
But on Monday, they told employers not to take advantage of the unique circumstances.
"The Antitrust Division will not tolerate companies and individuals who use COVID-19 to harm competition that cheats payroll and non-payroll workers," said Assistant Attorney General Makan Delrahim in a release. "This includes doctors, nurses, first responders, and those who work in grocery stores, pharmacies, delivery and distribution networks, and warehouses, among other essential service providers on the front lines of addressing the crisis."
The agencies said they would challenge unlawful wage-fixing and no-poach agreements, anti-competitive noncompete agreements, and unlawful exchange of competitively sensitive employee information, including salary, wages, benefits and compensation data, as they have in the past.
"Many American workers are under a tremendous amount of stress because of COVID-19, and that includes essential workers and first responders," FTC Chair Joe Simons said in a release. "We will not stand for any collusion among employers that would deprive workers of competitive compensation for their hard work."
--Additional reporting by Bryan Koenig. Editing by Bruce Goldman.
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