A 20-Year Consent Order Prohibiting the Use of Non-Compete Agreements – Antitrust Byte
On June 2, 2023, the Federal Trade Commission (FTC) announced that it finalized a consent order with Anchor Glass Container Corp. (“Anchor Glass”).
This consent order follows the FTC’s administrative complaint, filed in March 2023, against Anchor Glass and its controlling owners (the “Respondents”). The FTC’s complaint alleged that Anchor had entered into non-compete agreements with more than 300 employees and that these non-compete agreements were unfair and had the “tendency or likely effect of harming competition, consumers, and workers . . . .”
The consent order is effective for a period of 20 years and requires the Respondents to “cease and desist from, directly or indirectly, entering or attempting to enter into, maintaining or attempting to maintain, enforcing or attempting to enforce, or threaten to enforce” any non-compete agreement for any of the 139 Anchor employee classifications identified by the FTC. The consent order also requires the Respondents to provide an FTC-approved notice letter to each employee, stating that the employee is not subject to a non-compete provision.
In addition, for a period of 10 years, the Respondents must provide notice of the order to officers and directors, as well as employees involved in the hiring process, and submit annual compliance reports. The Respondents also have an affirmative obligation to notify the FTC of any change in any dissolution, acquisition, merger, or consolidation of any of the Respondents.
