Recently, “no-poach” agreements—which commonly restrict the right of a person or company to recruit or hire another party’s employees—have become the subject of increased scrutiny from federal and state enforcement agencies. Whether set forth in stand-alone agreements, corporate acquisition agreements, or employment agreements, these types of restrictive covenants have become the subject of a recent flurry of government enforcement actions and private class actions, providing a warning to businesses about the potential civil and criminal liability they face for entering into agreements that have the effect of limiting employee mobility or suppressing wages.
The Department of Justice’s Position
