At the end of October, the U.S. Department of Justice Antitrust Division (DOJ) and Federal Trade Commission (FTC) communicated a significant shift in their enforcement guidance regarding competition among employers to limit or fix terms of employment for potential hires. In a new publication, Antitrust Guidance for Human Resource Professionals, the DOJ announced its
DOJ
Competitors Beware — No-Hire Agreements May Draw Unwanted Attention from the Feds
By Russell Cawyer on
Posted in Noncompetes and Restrictive Covenants
Last year the Antitrust Division of the U.S. Department of Justice filed suit against several technology sector companies over their mutual agreements not to recruit each other’s employees through the use of cold-calling. The DOJ contended that such agreements (sometimes called no-switching or no-poaching agreements) had the effect of reducing competition for high tech employees; limited employees’ opportunities to find…