News & Analysis as of

No-Poaching Hiring & Firing Enforcement Actions

Ius Laboris

When Anti-poaching Becomes Anti-competitive: Turkish Ruling Reshapes Hiring Rules

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A landmark decision by the Turkish Competition Authority confirms that no-poach agreements between organisations may violate Turkish competition law....more

Littler

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

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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

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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

Quarles & Brady LLP

Seventh Circuit Rejects Dismissal of Franchisee No-Poach Clause Challenge

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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

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...

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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

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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

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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

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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

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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

Jenner & Block

Department of Justice Prosecutions in Employment-Related Antitrust Suits Fall Flat in DaVita Inc. and Jindal

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Juries Acquit Criminal Antitrust Defendants of All Charges - This month, federal juries acquitted defendants facing criminal antitrust convictions in two trials against employers accused of improperly restraining trade in...more

Polsinelli

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

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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

Vinson & Elkins LLP

Prominent Services Contractors Ensnared in No-Poach Class Action

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For many federal government contractors, their skilled and experienced workforce may be their most valuable asset. A recent “ice breaker” settlement of a class action lawsuit, however, demonstrates the wrong way to protect...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

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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

A&O Shearman

Key Antitrust Enforcement Trends — 2019 Antitrust Annual Report

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Welcome to the 2019 Shearman & Sterling Antitrust Annual Report. Our seventh edition focuses on the contrasting use by regulators of antitrust laws with respect to the FANGs, and how antitrust is being enforced in the U.S....more

Skadden, Arps, Slate, Meagher & Flom LLP

DOJ Wades Deeper Into No-Poach Advocacy

In early February 2019, the Department of Justice (DOJ) announced its intent to file statements of interest in multiple ongoing private lawsuits to clarify how “no-poach” agreements should be evaluated under the federal...more

McDermott Will & Schulte

US DOJ Adds Complexity to Enforcement of “No-Poach” Agreements under Antitrust Law

On Thursday, March 7, the Antitrust Division intervened in three antitrust class actions to urge the court that no-poach agreements between vertically related firms, such as between franchisor and franchisee, should be...more

Skadden, Arps, Slate, Meagher & Flom LLP

No-Poach Update: DOJ Seeks to Rein In Franchise Suits

Evolving antitrust treatment of so-called “no-poach” agreements continues to offer important guidance for company counsel and human resources professionals. Over the past two years, the Department of Justice (DOJ) has...more

Ballard Spahr LLP

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

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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

Jones Day

Antitrust Alert: FTC Challenges Wage-Fixing Conspiracy Between Texas Staffing Companies

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The Federal Trade Commission (FTC) and two Dallas therapist staffing companies have settled charges that they conspired to fix the wages of contract therapists in violation of the federal antitrust laws. This is the FTC's...more

Lewitt Hackman

FRANCHISOR 101: No Poach for You

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Franchise agreements commonly prohibit the franchisee from soliciting or hiring workers employed by the franchisor or other franchisees. This may take the form of “no-hire” or “no-switching” clauses that prohibit hiring each...more

Seyfarth Shaw LLP

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

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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

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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

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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

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