Alert 12.20.24
Alert
02.07.25
On January 16, 2025, four days before the Trump administration took office, the Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) jointly issued the Antitrust Guidelines for Business Activities Affecting Workers (the “2025 Guidelines”). These guidelines replace the prior October 2016 version, Antitrust Guidance for Human Resource Professionals, jointly issued by both antitrust enforcement agencies, in the final months of the Obama administration. The 2025 Guidelines update how the federal agencies assess business practices and agreements affecting workers under federal antitrust laws.
While the original guidelines focused primarily on per se illegal wage-fixing and no-poach agreements, the 2025 Guidelines illustrate a significant expansion in enforcement, broadening scrutiny to compensation benchmarking, wage-setting practices, and the exchange of employment data—particularly through third parties, algorithms or data aggregation tools. Among other expansions, the 2025 Guidelines also specify that businesses sharing sensitive employment information, even indirectly, face heightened enforcement risks.
Enforcement Questions
The 2025 Guidelines follow a series of criminal jury trial and case losses for the DOJ in wage-fixing and no-poach cases. These cases raise new questions about the application of the Sherman Act to labor-market restraints and the circumstances in which criminal cases can and should be charged. And despite the DOJ’s recent cases, it has continued to confirm its intent to bring criminal investigations and prosecutions involving labor market issues.
The FTC commissioners approved the 2025 Guidelines by a narrow 3-2 margin along party lines, with a strong dissent from the Republican commissioners. Commissioner Andrew Ferguson, Trump’s nominee to serve as FTC Chair, expressed concerns about the timing and content, questioning why the outgoing administration should “replace existing guidance mere days before they hand over the baton,” calling it a “senseless waste of Commission resources” due to the change in administration.
These comments and the change in administration cast some uncertainty whether the 2025 Guidelines may be revisited or modified under the new Trump Administration. However, the 2016 guidelines remained in place during the first Trump Administration. Commissioner Ferguson has acknowledged in a recent dissenting statement that it is “wise” for the FTC “to focus its resources on protecting competition in labor markets.” In the meantime, employers should take note of the new insights in the 2025 Guidelines, as they provide the most recent view of how antitrust enforcement agencies may analyze and prioritize these issues.
Key Updates and Considerations
Conclusion
The 2025 Guidelines represent a significant evolution from the 2016 version. While the basic message remains that no-poach and wage-fixing raise antitrust risks, the 2025 Guidelines confirm that a broader range of conduct may attract civil or criminal scrutiny.
Significant antitrust risk remains. Courts have already allowed multiple labor-focused indictments to proceed to trial (even though juries have acquitted defendants on these charges), and private class actions continue to challenge no-poach and non-compete provisions.
If you have questions about antitrust risk in labor market matters, how the 2025 Guidelines might affect your business, or need assistance reviewing labor-market practices, our Pillsbury Antitrust & Competition practice group has experience in addressing these issues.