To comply with antitrust law, your organization should never make deals with other companies to refuse to recruit or hire their workers. Also, don’t share internal data with competitors about employee salaries. The federal government is looking closer at companies that make such “no poaching” deals.

In 2016, the Obama administration issued new guidance that clarified it will prosecute employers for antitrust laws if they engage in agreements not to recruit each other’s employees and set compensation to make it less attractive for employees to jump ship.

Now the Trump administration is doubling down on that threat. The Department of Justice has announced it would file criminal charges against employers who engage in such “no poaching” agreements.

From 2013 to 2016, the DOJ went after several Silicon Valley companies that established no-poaching pacts. The cases were settled, with employers agreeing to pay modest fines and stop colluding.

Now the DOJ says any violation of the civil settlements will result in criminal charges being filed. And new legislation pending in Congress would clearly criminalize no-poaching agreements.

Source: HR Specialist | May 2018