Washington, D.C. — The Federal Trade Commission today voted 3-1 to sue security guard firm Prudential Security, glass manufacturers Ardagh and Owens-Illinois, and two individuals for illegal noncompete restrictions they imposed on thousands of workers. In response to these actions, which mark the first time that the agency has sued to halt unlawful noncompete restrictions, the American Economic Liberties Project released the following statement.

“Today’s enforcement actions are a milestone for the FTC,” said Sarah Miller, Executive Director of the American Economic Liberties Project. “For the first time in its history, the FTC has found that non-compete agreements can constitute an unfair method of competition under Section 5 of the FTC Act. Although we think the name “non-compete” says it all, for too long working people have been denied the freedom to change jobs, negotiate for better pay, and start new businesses under these coercive agreements. We encourage the FTC to make clear to working people and market participants that the use of non-compete agreements to control employees and undermine fair competition contravenes the antitrust laws, full stop.”