While the federal government has been ramping up enforcement of antitrust laws, the Society for Human Resource Management (SHRM) warned that completely banning all no-poach agreements would be detrimental to companies and HR professionals.
SHRM recently filed a friend-of-the-court brief in support of Connecticut HR executives who were charged by the U.S. Department of Justice (DOJ) with restricting the hiring and recruiting of aerospace engineers.
The grand jury indictment alleged that six executives in the aerospace industry conspired to uphold illegal no-poach agreements between their companies from 2011 to 2019. It claimed that a manager chastised suppliers who recruited another company's employees and that he threatened to punish those suppliers by taking away access to projects. It also said the group of companies recognized the mutual financial benefit of this no-poach agreement, including reducing labor costs.
On Aug. 10, the DOJ opposed the defendant's motion to dismiss the indictment, calling the agreement a "conspiracy" that "stalled careers and mired workers in underpaid, unwanted jobs."
There's been increased action under the Biden administration to enforce federal antitrust laws.
"The Department of Justice is very focused on identifying and eliminating anti-competitive conduct in labor markets, including illegal no-poach agreements, wage-fixing agreements and noncompete agreements," said Jessica Maurer, an attorney with Mayer Brown in Chicago. "This is not...
Schubert Jonckheer & Kolbe LLP is investigating potential legal claims against Aquestive Therapeutics for allegedly misleading investors about FDA approval prospects for its drug Anaphylm. The...