News & Analysis as of September 18, 2024

Hiring & Firing › No-Poaching

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Hiring & Firing refers to the process of recruiting, interviewing and offering employment and the process of evaluating performance and dismissing employees. Hiring & Firing is a highly regulated area and can create tremendous liability for employers who fail to properly adhere to acceptable employment practices. Some of the potential pitfalls in this area stem from discriminatory hiring practices, improper performance evaluations, and retaliatory firings. less -

Balancing Act: Navigating Nuances in Labor Market Enforcement

WilmerHale on 7/8/2024

In recent years, the Department of Justice Antitrust Division (“DOJ”) and the Federal Trade Commission (“FTC”) have significantly ramped up enforcement efforts in labor markets. This article delves into two key enforcement...more

Elevating the Candidate Experience: From Application to Offer and Beyond

Mitratech Holdings, Inc on 5/28/2024

Every candidate wants to be treated like they are special. Even though we are currently in an “employer’s market” we aren’t looking for bodies to fill the space. We’re looking for gifted, talented employees that make a...more

SCOTUS Denies Petition to Review McDonald’s No Poach Lawsuit

Ervin Cohen & Jessup LLP on 3/21/2024

On March 18, 2024, the Supreme Court of the United States (the “Supreme Court”) denied a petition for writ of certiorari brought by McDonald’s USA, LLC (“McDonald’s”). McDonald’s had asked the Supreme Court to review a...more

Federal and State Authorities Bring Antitrust Enforcement to the Contingent Workforce Sector

Littler on 1/4/2024

The U.S. Department of Justice (DOJ), Federal Trade Commission (FTC), and now state attorneys general, have set their sights on staffing companies in their evolving efforts to examine labor markets through an antitrust lens....more

Employer Update: DOJ Drops Final No-Poach Prosecution Case

Cole Schotz on 12/20/2023

On November 13, 2023, the U.S. Department of Justice (“DOJ”) moved to drop its last remaining no-poach criminal prosecution case, U.S. v. Surgical Care Affiliates LLC, et al. This marks an informal end to the DOJ’s...more

You Better Watch Out: The OAG Is Stepping Up Enforcement of D.C.’s Non-Compete Ban

Epstein Becker & Green on 12/1/2023

Just over a year into the implementation of the Washington, D.C. Ban on Non-Compete Agreements, as amended by the Non-Compete Clarification Amendment Act of 2022 (together, the “D.C. Non-Compete Ban”), the District of...more

DOJ Seeks to Dismiss Its Last Pending No-Poach Criminal Action

Epstein Becker & Green on 11/22/2023

As we discussed earlier this year, the U.S. Department of Justice (“DOJ”) in recent years has brought numerous criminal prosecutions against companies accused of engaging in so-called “naked” no-poach agreements, i.e.,...more

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

Troutman Pepper on 10/4/2023

In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Fresh Off the Grill: No-Poach Agreements May Lead to Per Se Antitrust Liability, Says 7th Circuit

Manatt, Phelps & Phillips, LLP on 9/27/2023

Introduction - No-poach agreements, wherein companies agree not to solicit or hire employees away from a competitor, have been targeted by the White House, the Federal Trade Commission (FTC) and the Antitrust Division....more

Seventh Circuit Rescues McDonald’s Workers’ Challenge to No-Poach Clause

Patterson Belknap Webb & Tyler LLP on 9/18/2023

The Seventh Circuit recently revived an antitrust challenge to a clause in McDonald’s franchise agreements barring franchises from poaching other franchises’ employees. (See our previous coverage of antitrust challenges to...more

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

Quarles & Brady LLP on 9/5/2023

In Deslandes v. McDonald’s USA LLC, issued August 25, 2023, the U.S. Court of Appeals for the Seventh Circuit overturned the dismissal of antitrust claims that challenged no-poach clauses in franchise agreements....more

California Assists New York Employees in No-Poach Case

CDF Labor Law LLP on 8/15/2023

A private class-action complaint claimed that the department store, Saks, and several luxury brands (including Louis Vuitton, Loro Piana, Prada, Brunello and Fendi) violated Federal Antitrust laws when they agreed that each...more

Georgia Court of Appeals: Non-Solicitation-of-Employees Covenant Must Contain Express Geographic Limitation

Littler on 7/11/2023

The Georgia Court of Appeals recently provided important clarification of the requirements for non-recruitment covenants under Georgia’s 2011 Restrictive Covenants Act. In North American Senior Benefits, LLC v. Wimmer, 2023...more

Criminal No-Poach Update: DOJ Seeks to Contain Fallout from Judgment of Acquittal

BakerHostetler on 6/1/2023

The Department of Justice (DOJ) continues to pursue no-poach agreements as criminal conduct despite yet another recent defeat, this time in United States v. Patel. In Patel, the DOJ alleged that employees of an aerospace...more

DOJ Continues to Prioritize No-Poach Cases

Jenner & Block on 5/16/2023

In recent years, the U.S. Department of Justice has tried three criminal no-poach cases to a jury, and in all three the defendants were acquitted. But expect the crackdown on the use of allegedly illegal no-poach agreements...more

DOJ Suffers Rare Acquittal From the Bench in Fourth Criminal No-Poach Loss

Skadden, Arps, Slate, Meagher & Flom LLP on 5/8/2023

In the latest setback in the Department Justice Antitrust Division’s (DOJ) attempts to prosecute “no-poach” agreements criminally, a federal judge acquitted from the bench all six defendant employees of aerospace engineering...more

Court Dismisses DOJ’s Latest “No-Poach” Case Before Jury Deliberations

Wilson Sonsini Goodrich & Rosati on 5/2/2023

In another blow to the U.S. Department of Justice’s (DOJ’s) efforts to criminalize “no-poach” and “wage-fixing” agreements, a federal judge terminated the DOJ’s latest “no-poach” case mid-trial before jury deliberations....more

Video: ACA Preventive Coverage Mandate Blocked, Another No-Poach Loss for DOJ, and Employers Prepare for the End of the COVID-19...

Epstein Becker & Green on 4/12/2023

As featured in #WorkforceWednesday: This week, we examine the decision of a Texas district court to strike down an Affordable Care Act (ACA) mandate on preventive medical services and look at the U.S. Department of Justice’s...more

Canada’s Competition Bureau Publishes Draft Guidelines for Enforcement of New “Wage-Fixing Agreement” and “No-poach Agreement”...

Littler on 1/24/2023

When Bill C-19, Budget Implementation Act, 2022, No. 1 received Royal Assent in June 2022, it amended Canada’s Competition Act (Act) by including a new provision, s. 45(1.1), which comes into force on June 23, 2023. Section...more

[Webinar] How to Navigate the Regulatory Trend to Ban and Criminalize Noncompetes - February 7th, 10:00 am - 11:00 am PT

Manatt, Phelps & Phillips, LLP on 1/24/2023

On the heels of the Federal Trade Commission’s (FTC) January 5, 2023 proposed rule banning noncompetes, Manatt’s antitrust and employment law attorneys will provide a comprehensive overview of the stepped-up efforts to tamp...more

Competition Bureau Publishes New Draft Enforcement Guidelines on Wage-Fixing and No Poaching Agreements

Stikeman Elliott LLP on 1/19/2023

On January 18, 2023, the Competition Bureau published draft enforcement guidelines on wage-fixing and no poaching agreements, inviting interested parties to provide their comments no later than March 3, 2023. The draft...more

The DOJ Gets the Green Light in its Latest No-Poach Criminal Prosecution

Foley Hoag LLP - White Collar Law &... on 12/23/2022

It has been a tumultuous year for the Department of Justice (“DOJ”) and its recent no-poach criminal prosecution strategy. No-poach agreements, which are arrangements between companies that place restrictions on the hiring...more

Weekly Checklist: Spotting Antitrust Risks in the Workplace

Fisher Phillips on 11/28/2022

Each week, FP Weekly members receive a practical and cutting-edge checklist of issues to consider, action steps to take, and goals to accomplish to ensure you remain on the top of your game when it comes to workplace...more

Eleventh Circuit Revives Putative Class Action Against Burger King for Violation of Federal Antitrust Laws Based on No-Poaching...

Bilzin Sumberg on 11/14/2022

Arrington v. Burger King Worldwide, Inc., No. 20-13561 (11th Cir. Aug. 31, 2022) – In October 2018, a former line cook of a Burger King franchise restaurant in Illinois, filed a class action complaint in the District Court...more

Unlocking the Handcuffs: Department of Justice Obtains Guilty Plea in “No-Poach” Hiring Agreement Case

Frantz Ward LLP on 11/7/2022

The Department of Justice has claimed its first victory in attacking “no-poach” agreements after a Nevada staffing company pled guilty and was sentenced to pay $134,000. The case arose out of a concerted effort by the...more

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Hiring & Firing › No-Poaching

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