The Federal Trade Commission said Thursday it has issued final consent orders requiring two glass container manufacturers to drop non-compete clauses.
The FTC said it finalized consent orders against Toledo, Ohio-based OI Glass Inc., formerly Owens-Illinois Inc., and Luxembourg-based Ardagh Group SA, which has operations in the United States.
The FTC said the final orders against OI Glass and Ardagh impose a number of requirements and restrictions on the companies, including a provision prohibiting them from enforcing, threatening to enforce or imposing non-competes against relevant employees.
The commission voted 3-1 to approve the final orders, with Commissioner Christine S. Wilson, the commission̵
7;s lone Republican, dissenting.In a statement on the cases issued in January, FTC Chairman Lina M. Khan said that three companies dominate the glass manufacturing sector nationally and that OI and Ardagh “imposed non-competes on, collectively, thousands of employees, including those working in key glass production, engineering, and quality assurance roles “, which “locked in highly specialized workers.”
In his dissent, Wilson said the three-page complaints against the companies are “woefully lacking in detail to support the commission’s allegations.”
Wilson announced in a Wall Street Journal opinion column earlier this month that she plans to resign.
The companies did not respond to requests for comment.
In January, the Federal Trade Commission proposed a sweeping ban on noncompete clauses in employment contracts, but opponents say implementation could be delayed or prevented by litigation that charges the agency has overstepped its authority.
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