Not too many subjects related to restrictive alliances get a buzzworthy status. However, when government and federal authorities and class advocates start filing complaints nationally, and Fortune 500 companies in different sectors begin to establish themselves and agree to change the way they do business, well, that usually generates some excitement and attention. It seems that not a week has happened lately without a new title being discussed on the most recent hot topic in the world of restrictive alliances – the “No Poaching” agreement. Companies are generally considered “buyers” of workers and workers as “suppliers.” Non-poaching agreements allow several companies to coordinate their labour purchases in order to increase their purchasing power and thus reduce their labour costs. By agreeing not to compete with certain categories of workers, these agreements can be considered similar to a horizontal market allocation. [3] The U.S. Department of Justice (DoJ) recently announced that it will actively investigate non-poaching and wage agreements between employers. The DoJ noted:[4] Agreements between employers not to engage with each other raise issues of cartel law and are “almost always illegal, ” said Cappelli, who is also the director of the school`s Human Resources Centre. He pointed out that informal and unwritten non-poaching agreements were common among Silicon Valley technology companies and had attracted the attention of the U.S. Department of Justice.

In fact, three years ago, Apple, Google, Intel and Adobe agreed to pay $415 million to settle a non-poaching complaint. 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. The deluge of activities in this area of restrictive contract law will remain a hot topic for the foreseeable future, as will the threat of criminal and civil prosecutions for companies implementing non-poaching agreements. 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.

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