News & Analysis as of

No-Poaching Employer Liability Issues Federal Trade Commission (FTC)

Sheppard Mullin Richter & Hampton LLP

DOJ and FTC Issue Antitrust Guidelines for Business Activities Affecting Workers

Four days before President Trump took office, the Department of Justice (“DOJ”) and Federal Trade Commission (“FTC”) (together, “the Agencies”) under the Biden administration released their “Antitrust Guidelines for Business...more

BCLP

CMA Hits Accelerator on Enforcement of UK Labour Markets

BCLP on

Whilst not traditionally a focus of the Competition and Markets Authority (“CMA”), the UK’s labour markets now form one of the CMA’s strategic priorities, as outlined in its 2023 to 2024 Annual Plan....more

Littler

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

Littler on

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

Ogletree, Deakins, Nash, Smoak & Stewart,...

Can Non-Compete Agreements Lead to Jail Time?

Can non-compete agreements lead to criminal fines—or even jail time? Yes, they can. That is because violating the Sherman Antitrust Act can result in criminal charges, not just civil liability....more

Littler

Will Europe Follow the Proposed U.S. Ban on Non-competes?

Littler on

The U.S. Federal Trade Commission (FTC) announced on January 5, 2023 a proposed ban on non-competes across the United States. With large global employers considering the implications of the proposed rulemaking, we reached out...more

Epstein Becker & Green

DOJ Fails Again in a No-Poach Prosecution

A Ruling and Order issued on April 28, 2023 by the U.S. District Court for the District of Connecticut in United States v. Patel, et al. ran the government’s losing streak to four failed trials seeking to criminally prosecute...more

Wilson Sonsini Goodrich & Rosati

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

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

White & Case LLP

CMA joins the global pack and signals increased antitrust scrutiny of labour markets

White & Case LLP on

The UK antitrust authority, the CMA, has recently published a guide for employers on how to avoid breaching UK antitrust law in labour markets. This publication signals the UK's intent to ratchet up antitrust scrutiny of...more

Bradley Arant Boult Cummings LLP

FTC Proposes Rule to Strike Noncompete Agreements Nationwide

On January 5, 2023, the Federal Trade Commission (FTC) announced a proposed new rule that would effectively prohibit employers from requiring employees to agree to noncompete clauses. The public is invited to submit comments...more

Frantz Ward LLP

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

Frantz Ward LLP on

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

Cole Schotz

Employer Alert: DOJ’s Active Prosecution of Employer “No-Poach” Agreements Nets First Guilty Plea

Cole Schotz on

The DOJ is cracking down on anticompetitive activities- In connection with the Biden administration’s aims at promoting competition throughout the economy, the Department of Justice (“DOJ”) has started taking a more active...more

Ballard Spahr LLP

DOJ Secures First Win in Criminal No Poach Action

Ballard Spahr LLP on

On October 27, 2022, VDA OC, LLC, (VDA) a Nevada health care staffing company, pleaded guilty to participating in a conspiracy to suppress and eliminate competition for the services of school nurses. According to the plea,...more

Venable LLP

No-Poach Agreements: Compliance and Best Practices for Independent Schools

Venable LLP on

As we enter hiring season in a very tight job market, school administrators may feel tempted to reach an understanding with other school leaders not to recruit or hire employees from each other. The Department of Justice...more

Epstein Becker & Green

Antitrust Enforcers Continue March to Protect Labor Markets in Health Care and Other Industries

Epstein Becker & Green on

On January 28, 2022, a federal grand jury in Maine returned an indictment charging four managers of home health care agencies with participating in a conspiracy to suppress the wages and restrict the job mobility of Personal...more

Dentons

Antitrust Concerns for Employers

Dentons on

In July of 2021, President Biden issued Executive Order 14036, which affirmed the executive branch’s policy to enforce antitrust laws. Two aspects of the Order relate directly to employment law...more

Benesch

Just like 2021, the DOJ and FTC will remain active in the Restrictive Covenant Space

Benesch on

2021 saw significant activity by both the Department of Justice (“DOJ”) and Federal Trade Commission (“FTC”) in 2021. The DOJ, for example, finally followed through on its 2016 warning/threat to investigate and potentially...more

Wilson Sonsini Goodrich & Rosati

Update on DOJ “No-Poach” and “Wage-Fixing” Criminal Antitrust Prosecutions

It has been nearly a year since the U.S. Department of Justice's Antitrust Division (DOJ) made good on its promise to criminally charge companies that agree not to solicit each other's employees in so-called "no-poach"...more

Hogan Lovells

From “no-poach” to non-competes: US antitrust enforcement in labor markets continues to evolve

Hogan Lovells on

The Covid-19 pandemic has caused upheaval across labor markets and resulted in what some have termed the “Great Resignation.” In the midst of these challenging labor market conditions, employers should be aware that the U.S....more

Orrick, Herrington & Sutcliffe LLP

State Attorneys General Newsletter – October 2021

New York Attorney General Enters into Settlement Prohibiting “No-Poach” Pacts in Title Insurance Industry - New York Attorney General Letitia James recently entered into a settlement agreement with a national insurance...more

Womble Bond Dickinson

Opportunity Economy: Risks in Antitrust Enforcement

Womble Bond Dickinson on

Takeaways - ..The Biden administration’s recent executive order takes a hard line on limits to employment mobility, such as non-compete agreements. ..No-poach agreements—companies agreeing not to recruit each other’s...more

Womble Bond Dickinson

Wage Fixing & Anti-Poaching Defense: Feds Take New, Aggressive Stand on No-Poach/Non-Solicit Agreements

Womble Bond Dickinson on

Federal regulators are taking an increasingly hard line on what are normally ordinary business operations that regulators view as suppressing wages and competition.  Antitrust issues can arise in every aspect of your...more

Sheppard Mullin Richter & Hampton LLP

President’s Executive Order Aims to Foster a Competitive Marketplace

On July 9, 2021 President Joe Biden issued an Executive Order on Promoting Competition in the American Economy, which urges the Attorney General and Federal Trade Commission (FTC) to curb the use of non-compete and no-poach...more

Faegre Drinker Biddle & Reath LLP

The Pennsylvania Supreme Court Strikes Down a No-Hire Agreement as an Unreasonable Restraint on Trade

Recently, in Pittsburgh Logistics Systems, Inc. v. Beemac Trucking, LLC, No. 31 WAP 2019, — A.3d –, 2021 WL 1676399 (Apr. 29, 2021), the Pennsylvania Supreme Court found that a no-hire provision that was ancillary to a...more

The Volkov Law Group

Antitrust Division Charges Health Care Staffing Company with Criminal Wage-Fixing and No-Poaching Agreement

The Volkov Law Group on

The Justice Department’s Antitrust Division is pushing criminal enforcement against companies for illegal wage-fixing among competitors in the hiring market. ...more

Skadden, Arps, Slate, Meagher & Flom LLP

DOJ Brings First Criminal Challenges to Wage-Fixing and No-Poach Agreements

More than four years after the U.S. Department of Justice (DOJ) and U.S. Federal Trade Commission (FTC) jointly released the Antitrust Guidance for Human Resource Professionals in 2016 (Antitrust Guidance), the DOJ has...more

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