The issue of allegedly anti-competitive HR practices in the form of so-called “no-poach” agreements continues to be an area of focus for the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC). In fact, in 2016 the DOJ and FTC released joint Antitrust Guidance for Human Resources Professionals. The guidance was written specifically for HR professionals on “how to spot and report collusion among employers that may violate antitrust laws.” That document also put employers on notice that future cases could involve criminal charges.
Now, the issue has also gained the attention of state and federal legislators, state attorneys general, and the private plaintiffs’ bar. A coalition of eleven state Attorneys General (AGs) has begun investigations of fast food chains, and in one instance at least fifteen fast food chains have agreed to stop including no-poach clauses in franchise agreements and to cease enforcing existing clauses under threat of litigation by the Washington State AG.
Members of the Center for Workplace Compliance (CWC) can read more here.