In trouble for not stealing competitors’ employees?
June 24, 2009 by Sam NarisiPosted in: Attracting talent, In This Week's E-Newsletter, Latest News & Views, Law
Companies often get in trouble for poaching their competitors’ employees. But can agreeing not to steal a company’s workers also create legal problems?
That’s a question the Justice Department is currently trying to answer. The agency is reportedly looking at the hiring practices of several of the country’s largest tech firms.
According to people familiar with the investigation, the question is whether companies such as Apple, Google and Yahoo have made an agreement not to recruit each other’s employees, the New York Times reports.
If so, they may be violating antitrust laws.
The investigation’s still in its early stages, so it’s hard to say what the Justice Department will find.
The bottom line for employers, though: It’s smart to avoid both “stealing” other companies’ employees in some cases (when a non-compete’s been signed, for example) and making an agreement not to do so.
Tags: antitrust, Apple, competitors, Google, Yahoo
July 6th, 2009 at 10:57 am
This seems like it could be trouble for those that agreed. I say don’t put it in writing. If they have it documented it looks bad. What would be the reason for making such an agreement in the first place?
July 6th, 2009 at 12:41 pm
There is a need to investigate this practic in other industries as well. It is doubtful this is unique to the technology industry. It seems anytime the people who run companies are unethical and can find a way to put the little guy at a disadvantage, they will and do.
July 7th, 2009 at 12:30 pm
What about competitors who agree not to hire each other’s staff “while they are still employed by the competing company”? Is this still violating the anti-trust laws? If so, how do I make a case to our ownership that we should discontinue this policy?