No-Poach Not Going Anywhere: FTC Chair Announces New Labor Task Force

Federal Trade Commission Chair Andrew Ferguson announced on February 24, 2025, that the FTC will create the agency’s “first-ever” labor task force, signaling the agency’s continued focus on competition in labor markets, answering an open question from companies as to the fate of the agency’s no-poach and non-compete enforcement priorities. On February 26 Chair Ferguson followed up on his announcement with a Directive Regarding Labor Markets Task Force, providing additional details on the task force and the agency’s priorities.

Since Chair Ferguson took over from outgoing-Chair Lina Khan, companies have anticipated a shift in priorities at the FTC. Whether the FTC would continue its enforcement efforts in the labor market sphere remained ambiguous. In a speech this week, Chair Ferguson elaborated on some of the agency’s priorities under the Trump-Vance Administration. Specifically, he called addressing “unfair competition or deception or unfairness” that can suppress employees’ wages a “top priority” for the FTC moving forward.

The directive is addressed to four divisions within the FTC: the Bureau of Competition, Bureau of Consumer Production, Bureau of Economics, and Office of Policy Planning. It explains that the task force will include at least three members from each Bureau and one member from the Office of Policy Planning and will meet at least monthly to assess the status of all ongoing labor matters. In the directive, Chair Ferguson specifically names a dozen forms of potential deceptive practices and unfair competition, including no-poach, no-hire, noncompete, and wage-fixing agreements. Notably, the directive also covers collusion or unlawful coordination on DEI markets, labor market monopsonies, harmful occupational licensing requirements, and “job scams.” The directive reaffirms Chair Fergusons remarks that, particularly with this task force, the FTC intends to “prioritize investigation and prosecution of deceptive, unfair, or anticompetitive labor market conduct.”

These remarks and the directive are consistent with priorities from the first Trump administration, when many of the Department of Justice’s first no-poach and wage-fixing cases were filed. Those cases were continued in the Biden administration, though Khan’s FTC extended its efforts in labor market and other enforcement to more novel theories, and published a rule banning nearly all noncompete agreements, which then-Commissioner Ferguson dissented from, calling it an overreach of the FTC’s rulemaking authority. Commissioner Ferguson also dissented from the Antitrust Guidelines for Business Activities Affecting Workers, issued just four days before the change in administration.

The FTC issued a rule banning most non-compete agreements in 2024, but the ban was immediately challenged in the courts and ultimately was put on hold by a federal court. The Biden administration FTC appealed the injunction, but it is unclear whether the current FTC will continue to pursue the case. Mark Meador, President Trump’s nominee for the open Commissioner seat on the FTC, gave further indications during his confirmation hearing on Tuesday, February 25, that the FTC’s Republican majority would not continue to pursue noncompete agreements through rulemaking. Meador explained that while he does think employers have “overused and abused” noncompete agreements, he believes the FTC can more effectively address this through enforcement actions on a case-by-case basis.

Regardless of the fate of the non-compete rulemaking, Chair Ferguson’s announcement makes it clear that labor markets will continue to be a focus for this FTC and companies should expected continued enforcement against unlawful no-poach and non-compete agreements.

Companies should continue to follow guidance on labor practices and monitor this developing space. In the near future, we anticipate more information to emerge on the FTC’s priorities, the new labor task force, and the future of the FTC’s ban on noncompete agreements.