The U.S. Department of Labor (DOL) and the Federal Trade Commission (FTC) recently committed to collaborating more closely on legal enforcement efforts.

The two agencies signed a memorandum of understanding that took effect Aug. 30. The agreement enables the agencies to partner on investigative efforts, conduct cross-training for staff at each agency, and share information from investigative files, complaints and statistical analyses.

The agreement identifies certain areas of mutual concern, including:

• Business models designed to evade legal accountability, such as misclassifying employees as independent contractors.
• The imposition of one-sided and restrictive contracts, such as noncompete and training repayment provisions.
• The impact of algorithmic decision-making on workers.
• Illegal claims and disclosures about earnings and costs associated with work.
• The extent and impact of labor market concentration.
• Collusive behavior by companies.
  

"What's unfair for workers is also unfair for law-abiding employers, and this partnership will help both of our agencies combat unlawful behavior, such as misclassification and contract provisions that restrict accessible opportunities to our growing workforce," Solicitor of Labor Seema Nanda said in a press release.

"Deepening our partnership with the DOL will ensure that we can work collectively to tackle illegal conduct that suppresses wages, reduces access to good benefits and working conditions, and stifles economic liberty for...

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