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US Department of Justice Justice to Six High Tech Companies ‘Stop Entering into Anticompetitive Employee Solicitation Agreements’

The U.S. DoJ announced a settlement with six high technology companies – Adobe Systems, Apple, Google, Intel, Intuit and Pixar – that prevents them from entering into no solicitation agreements for employees. DoJ said that the agreements eliminated a significant form of competition to attract highly skilled employees, and overall diminished competition to the detriment of affected employees who were likely deprived of competitively important information and access to better job opportunities.

According to complaint, these companies entered into agreements that restrained competition between them for highly skilled employees. The agreements between Apple and Google, Apple and Adobe, Apple and Pixar and Google and Intel prevented the companies from directly soliciting each other’s employees. An agreement between Google and Intuit prevented Google from directly soliciting Intuit employees.

And, that the companies engaged in a practice of agreeing “not to cold call” any employee at the other company. The complaint indicates that agreements were formed and actively managed by senior executives of these companies.

More Info: Settlement

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