U.S. Department of Justice building in Washington, D.C./Photo: Diego M. Radzinschi/ALMWhat to Make About the Justice Department's Most Recent 'No-Poach' Settlement
Management-side and antitrust lawyers are looking for enforcement clues about how the U.S. Justice Department will approach no-poach agreements between companies.
April 25, 2018 at 05:05 PM
4 minute read
Management-side lawyers and antitrust specialists are parsing a recent U.S. Justice Department settlement targeting a “no poach” deal that restricted employee recruitment between two companies, one new sign the Trump administration isn't shying from enforcement in this area.
The Justice Department in April settled a complaint against rail equipment suppliers Knorr-Bremse AG and Westinghouse Air Brake Technologies Corp. In the lawsuit, the government had alleged the companies unlawfully agreed for years not to compete for the other's employees.
The DOJ has warned since October 2016, in new guidance for human resources professionals, that companies and individuals could face criminal charges for no-poach agreements, but the government did not file any such charges in this case. Makan Delrahim, the department's antitrust chief, suggested in January that the first criminal charges were imminent.
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