WASHINGTON, D.C. — The Federal Trade Commission finalized a consent order requiring Gateway Services, Inc. and its subsidiary to halt the use and enforcement of sweeping noncompete agreements that barred employees from working anywhere in the pet cremation industry for a year after leaving the company.
The order frees nearly 1,800 workers from restrictions the FTC described as anticompetitive and harmful to job mobility. Under the terms of the settlement, Gateway must void existing noncompete agreements covered by the order and is prohibited from using similar provisions in the future.
The FTC alleged that Gateway’s nationwide noncompete rules limited competition by restricting former employees’ ability to seek better wages, negotiate improved benefits, or move to competing pet cremation providers.
After a public comment period, the Commission voted 2-0 to approve the final order, concluding an enforcement action that regulators say signals continued scrutiny of employment restrictions that reduce worker mobility across industries.
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