FTC Chairman Andrew N. Ferguson issued a warning letter to Mortgage Connect, a national mortgage services provider, urging a review of its employment contracts. The review should focus on noncompete agreements and other restrictive covenants to ensure compliance with the law.
The letter stems from an ongoing lawsuit where Mortgage Connect seeks to enforce a noncompete agreement against a former employee and the competitor that hired her. The FTC's letter indicates that Mortgage Connect may have used unjustifiable noncompete agreements, potentially harming workers and competition.
The FTC encourages Mortgage Connect to discontinue using noncompete or other agreements that are not reasonably necessary and to inform affected workers of the change.
This warning letter is part of the FTC's ongoing efforts to investigate potentially anticompetitive noncompete agreements and take enforcement actions to restore competition.
In February, the FTC launched a Joint Labor Task Force to address deceptive, unfair, and anticompetitive labor-market practices that harm American workers.
Recently, the FTC ordered Rollins Inc., a major pest-control company, to stop enforcing noncompete agreements against over 18,000 employees nationwide.
The FTC aims to promote competition and protect consumers. The agency provides resources on how competition benefits consumers, how to file an antitrust complaint, and how to comment on a proposed merger.
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