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The Federal Trade Commission (FTC) and the Department of Justice (DOJ) vowed to protect front line workers and other essential workers from those who want to take advantage of the current coronavirus (COVID-19) pandemic to circumvent antitrust laws. Front line workers include doctors, nurses, first responders, pharmacists, and those who work at grocery stores, warehouses, truck drivers, and other essential service providers. The FTC’s Bureau of Competition and the DOJ’s Antitrust Division is on alert for employers, staffing companies, and recruiters among others who might collude to engage in anticompetitive practices in the labor market. The agencies made it clear that it will not hesitate to hold accountable those who will use the COVID-19 pandemic as an opportunity to exploit American workers by undermining competition in the labor markets. The DOJ’s Antitrust Division will criminally prosecute companies and individuals who enter into illegal wage-fixing and no-poach agreements. On the other hand, FTC’s Bureau of Competition will file a civil complaint against those who invite collusion. Additionally, the agencies may use their civil enforcement authority to challenge unilateral anticompetitive conduct by employers that harms competition in a labor market.

FTC, DOJ maintain competition policy even during a crisis

In a joint statement, FTC Chairman Joe Simons said, “Many American workers are under a tremendous amount of stress because of COVID-19, and that includes essential workers and first responders. We will not stand for any collusion among employers that would deprive workers of competitive compensation for their hard work.” On the other hand, DOJ Antitrust Division Assistant Attorney General Makan Delrahim, said, “The Antitrust Division will not tolerate companies and individuals who use COVID-19 to harm competition that cheats payroll and non-payroll workers…Even in times of crisis; we choose a policy of competition over collusion. The Division will use its enforcement authority to ensure that companies and individuals who distort the free market for labor are held to account.”