Employment Enterprises Blog

DOJ Vows Criminal Prosecution of Employee "No Poaching" Agreements

Posted by Jonathan Crotty on Oct 5, 2017 4:17:41 PM

Hand about to bang gavel on sounding block in the court room.jpeg

A few years ago, several Silicon Valley employers made news when they were accused of agreeing among themselves not to solicit each other’s programmers and software engineering employees. These employees are in high demand, and the alleged agreements were viewed as attempts to avoid salary battles as well as expenses involved in recruiting for employees who departed for another tech company.

Earlier this month, the federal Department of Justice reiterated comments made during the Obama administration with regard to its view of this behavior. The acting head of DOJ’s Antitrust Division reminded companies that these types of agreements constitute per se violations of federal antitrust laws and subject the companies and executives involved in such agreements to criminal prosecution. He noted that these agreements have the effect of illegally suppressing employee compensation by preventing them from leveraging their skills for higher wages.

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Jonathan Crotty of  Parker Poe Adams & Bernstein LLP has been a successful counselor and problem solver for large and small employers in the Carolinas and beyond for more than 20 years. He heads Parker Poe’s Employment & Benefits practice group and represents employers in all aspects of the employment relationship, from hiring to discharge. He can be reached at jonathancrotty@parkerpoe.com.

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Topics: Compensation, Department of Justice, Legal

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