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

O-I Glass

04/01/2023 22:44

(Adds that FTC rule expected on noncompetes, Titan comment)
       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 Biden administration also disclosed on Wednesday that
the Federal Trade Commission (FTC), which enforces antitrust
law, plans to propose a rule barring companies from imposing the
provisions on workers, according to a public notice that offered
few details.
    The FTC said on Wednesday 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 and O-I Glass did not immediately respond to requests
for comment. Titan Security, which acquired Prudential Security,
said it does not use noncompete agreements and supported
dropping them.
    The actions against the companies coupled with the rule
announcement show the Biden administration is stepping up
efforts to boost worker protections. 
    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 and David Shepardson; Editing by
Josie Kao)
 ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))