News & Analysis as of

Enforcement Actions No-Poaching Employer Liability Issues

Goodwin

EU Fines Delivery Hero and Glovo €329 Million for Labour Market Cartel: Key Takeaways

Goodwin on

On 2 June 2025, the European Commission (the Commission) fined Delivery Hero and its Spanish subsidiary Glovo a combined €329 million for operating a cartel in the online food delivery sector....more

Epstein Becker & Green

NLRB Issues Complaint Alleging Business-to-Business No-Poaching Agreements Violate Employees’ Rights in Latest Attack on...

Epstein Becker & Green on

On September 12, 2024, the Regional Director of the National Labor Relations Board’s (“NLRB”) Region 22 in Newark, New Jersey, issued an unfair labor practice complaint against a New Jersey building services company, alleging...more

Epstein Becker & Green

NLRB Opens New Front in Campaign Against Contractual Restrictive Covenants, Now Targeting No-Poach Provisions in a Business’...

Epstein Becker & Green on

On September 12, 2024, the Regional Director of the National Labor Relations Board’s (“NLRB”) Region 22 in Newark, New Jersey, issued an unfair labor practice complaint against a New Jersey building services company, alleging...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

Epstein Becker & Green

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

Epstein Becker & Green on

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

DarrowEverett LLP

Q3 Employment Law Updates: Enforcement Actions Bring Much for Employers to Consider

DarrowEverett LLP on

The third quarter of 2023 has been pretty exciting as far as employment lawyers are concerned. Substantial regulations have been proposed and the pressure from federal agencies continues to rise. We will talk about some of...more

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

Quarles & Brady LLP on

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

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

Foley Hoag LLP - White Collar Law &...

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

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

Bilzin Sumberg

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

Bilzin Sumberg on

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

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

Jenner & Block

Latest Decisions in Criminal No-Poach and Civil Non-Compete Cases Indicate Continuing Scrutiny of Restrictive Covenants

Jenner & Block on

Parties in Criminal No-Poach Case Reach Pre-Trial Resolution - Recently, the parties in United States v. Hee notified District Court Judge Boulware of the District of Nevada that they reached a preliminary plea deal. The...more

Perkins Coie

Antitrust Challenge to McDonald’s No-Poach Restriction Evaluated Under the Rule of Reason

Perkins Coie on

A federal judge in the U.S. District Court for the Northern District of Illinois has held that an antitrust challenge to a “hiring restriction [that] prevented” plaintiff employees “from taking a better-paying position with a...more

Robinson & Cole LLP

Limiting Antitrust Exposure in the Employment Setting

Robinson & Cole LLP on

In what has commonly been referred to as the “Great Resignation,” nearly 50 million people voluntarily resigned from their jobs in 2021. The majority of those resigning sought a higher paying or better opportunity with...more

Polsinelli

DOJ Faces Two Strikeouts in First Health Care Wage-Fixing and “No Poach” Prosecutions

Polsinelli on

On April 14, 2022, a Texas jury returned five not-guilty verdicts on six charges considered in the first federal criminal wage-fixing prosecution. A day later, on April 15, 2022, a Colorado federal jury entirely acquitted...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

Epstein Becker & Green

DOJ’s First Wage Fixing Indictment Survives a Motion to Dismiss Because Court Finds Wage-Fixing Agreements are Illegal Per Se

Epstein Becker & Green on

Within the last year, the U.S. Department of Justice (DOJ) brought its first indictments alleging criminal wage-fixing conspiracies and criminal no-poach conspiracies among competing employers. In December 2020, DOJ indicted...more

Husch Blackwell LLP

The Biden Administration: Expected Changes In Workplace Protections

Husch Blackwell LLP on

Husch Blackwell’s Labor & Employment team is launching a series of employment and labor alerts and labor law podcasts that discuss the expected changes in labor and employment laws under the Biden administration and provide...more

Cadwalader, Wickersham & Taft LLP

DOJ Brings First Criminal “No-Poach” and “Wage-Fixing” Prosecutions; New Focus on Labor Market Prosecutions

What happened? The Department of Justice’s Antitrust Division (“DOJ”) announced that, on January 5, 2021, a federal grand jury returned a two-count indictment charging Surgical Care Affiliates LLC and its related entity...more

Cozen O'Connor

Antitrust Enforcers Lodge First Criminal Indictment for Violation of No-Poach Agreement

Cozen O'Connor on

The Department of Justice (DOJ) is carrying out its promise to prosecute illegal “no-poach” agreements between companies. Until last week, DOJ had brought only civil enforcement actions against companies that have allegedly...more

Ballard Spahr LLP

Employers, Beware: DOJ, FTC Mean Business With Enhanced Antitrust Enforcement Efforts

Ballard Spahr LLP on

Employers should assess whether their employment practices— including benchmarking, recruitment, and the sharing of information about employee compensation—comply with antitrust law requirements in the face of increased...more

Seyfarth Shaw LLP

State Attorneys General Investigate Fast Food Franchisor “No Poach” Agreements

Seyfarth Shaw LLP on

The Attorneys General of ten states are investigating fast food franchisors for their alleged use of “no poach” provisions in their franchise agreements, according to a press release by the New Jersey Attorney General’s...more

Perkins Coie

DoJ Employee "No-Poach" Antitrust Consent Decree Sharpens Compliance Teeth

Perkins Coie on

The U.S. Department of Justice (DoJ) filed a complaint recently alleging that competing railroad equipment manufacturers Knorr-Bremse AG, Westinghouse Air Brake Technologies Corporation (Wabtec) and Faiveley Transport S.A....more

Vedder Price

Changing Tides in HR Antitrust: What Employers Need to Know

Vedder Price on

Human resources ("HR”) departments have historically had little reason to hold antitrust law top of mind, as there was little in the way of enforcement activity concerning personnel issues. In recent years, however,...more

Troutman Pepper Locke

No-Poach Agreements Targeted by Plaintiffs, Enforcement Agencies and Senators

Troutman Pepper Locke on

Agreements among companies to not hire each other’s workers are more risky than ever. The DOJ’s Assistant Attorney General for the Antitrust Division, Makan Delrahim, stated on January 19 that the division has criminal cases...more

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