FTC Approves Final Order Prohibiting Noncompete Enforcement by Gateway Services
The Federal Trade Commission finalized a consent order that requires pet cremation company Gateway Services, Inc. and its subsidiary to stop enforcing noncompete agreements against their employees.
Gateway’s noncompete agreements prohibited employees from working in the pet cremation service industry anywhere in the United States for one year after leaving Gateway. Under the terms of the FTC’s final consent order, Gateway is required to stop enforcing existing noncompete agreements specified in the order and is prohibited from entering into similar agreements moving forward. The order will free nearly 1,800 employees from these restrictive noncompete agreements that limit job mobility and the ability to negotiate better wages and benefits.
The final consent order resolves an FTC complaint that alleged Gateway’s noncompete agreements are anticompetitive and suppress competition.
Following a public comment period, the Commission voted 2-0 to approve the final order.
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