Agreements for setting bare wages or non-financing between employers, whether concluded directly or through a third-party intermediary, are in themselves illegal under antitrust law. In other words, if the agreement is separate or reasonably not necessary for greater legitimate cooperation between employers, it is considered illegal, without its effects on competition being considered. In its simplest form, a non-poaching contract is an agreement, either in writing or orally between two or more companies, so as not to compete with the employees of the other. B, for example, by not claiming them during their employment or by hiring them for a certain period after they leave work. It is a kind of non-competitive agreement that includes non-recruitment, non-solicitation, no-hire and/or other conditions that affect an employee`s ability to move from one company to another. Companies sometimes include non-poaching clauses in comparisons that settle commercial disputes. They may also occur in the due diligence phase of a possible merger or acquisition or in the context of franchise agreements. In this article, I talk about these so-called non-poaching agreements, recent legal infringements on their validity and applicability, and some takeaways. Lieff Cabraser`s cartel and labour law experts defend workers` rights and vigorously fight against them.
If you or someone you know suspects that you have suppressed your chances or wages because of no-Poach or other agreements, we urge you to contact Antitrust Practice Group partner Dean M. Harvey today for a free, confidential and non-binding report on your case. The information you provide helps us bring companies to justice for violations of cartel and worker protection laws. Employers should review their existing contracts to determine if they do not have poaching and assess whether they should be removed. In addition, staff professionals and others involved in recruitment and compensation decisions should review the DOJ/FTC “guidelines” to identify and avoid antitrust pitfalls.