On the surface, so-called “no-poach agreements” seem logical, particularly in a highly competitive labor market. In such contracts, employers agree to limit hiring from each other’s talent pools. But this is in violation of federal law, and the U.S. Department of Justice, Federal Trade Commission, and other agencies are ramping up enforcement efforts, even in instances where companies don’t seem to be in direct competition. In the eyes of the law and regulatory bodies, employers compete for talent, and restricting the market for labor is just as off-limits as restricting competition for consumer goods.
The following video illustrates common mistakes employers make related to no-poach agreements. The video also demonstrates how company officials should respond if the topic of no-poach agreements arises in their workplace.
This video is the first in Womble Bond Dickinson’s “Antitrust Roadblocks for your Business” series. Learn more about WBD’s Antitrust Litigation Team, and stay tuned for further updates on antitrust topics.