In Law360, Attorneys Discuss the DOJ’s Increased Scrutiny of "No Poach" Agreements
In a Law360, litigation & enforcement counsel Greg Demers, litigation & enforcement partner Jonathan Klarfeld, and litigation & enforcement senior attorney David Young discuss the new focus being placed on potentially anti-competitive conduct in labor markets by the U.S. Department of Justice.
Recent enforcement efforts have focused specifically on the issue of “no-poach agreements,” in which companies agree not to recruit or solicit each other’s employees. The government generally views these agreements as unlawful (unless they fall into certain recognized exceptions), but the lack of judicial precedent around these matters has created uncertainty over the DOJ’s ability to prosecute them.
“The DOJ’s increased scrutiny comes at a time when employee mobility runs high, creating a recipe for significant regulatory risk as companies look for ways to prevent the poaching of high-performing employees who possess trade secrets or other highly confidential information, and who may be hired away by counterparties or consultants with whom companies previously had a close relationship,” the authors noted. The article outlines the scope of recent enforcement efforts and steps companies can take to protect their workforce while mitigating antitrust risk.