U.S. forces glass, security companies to drop noncompete clauses for workers

O-I Glass

04/01/2023 18:32

WASHINGTON, Jan 4 (Reuters) - Under pressure from the
Biden administration, two glass container makers and a security
company have agreed to drop noncompete requirements which
limited where employees could work if they left their jobs.
    The Federal Trade Commission (FTC), which enforces antitrust
law, said that Ardagh Glass S.A. and O-I Glass Inc, the two
largest U.S. glass container makers, had agreed to scrap their
noncompete agreements, which affected more than 1,700 workers.
Ardagh typically barred former workers from being employed by
another similar company for two years while O-I Glass said the
company had to give written consent for former workers to take
new jobs in the industry, the FTC said.
    The agency said the complaints in the case were the first
that it had filed to stop what it described as "unlawful
noncompete restrictions."
    Prudential Security, Inc and Prudential Command, two
affiliated companies which have sold much of their business,
also agreed to end enforcement of noncompete provisions in
employment contracts.
    Ardagh, O-I Glass and Titan Security, which acquired
Prudential Security, did not immediately respond to requests for
comment.
    U.S. antitrust agencies, including the FTC, have pursued
companies that limited workers' opportunities but the Biden
administration has put more emphasis on the issue.
    FTC Commissioner Rebecca Slaughter said in 2020 that surveys
have estimated that noncompete provisions covered 16% to 18% of
all U.S. workers. She said that 12% of workers earning less than
$20,000 per year are subject to the provisions.
 (Reporting by Diane Bartz; Editing by Josie Kao)
 ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))