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

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WASHINGTON (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 Federal Trade Commission (FTC), which enforces antitrust law, said that Ardagh Glass S.A. and O-I Glass (NYSE:OI) 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, O-I Glass and Titan Security, which acquired Prudential Security, did not immediately respond to requests for comment.

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.