Employers Enforcing Illegal “No-Poach” Rules Ordered to Pay Millions

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$48.95 Million Dollar Settlement Reached for Underpaid Employee Lawsuit

Chalk up another win for underpaid employees. A judge recently announced that a $48,950,000 settlement has been reached between several major railway equipment suppliers and their employees for “fixing” lower wages using “no-poach” agreements among competitors. Now California Biotech companies are in the hot seat facing similar allegations from employees who have had their pay suppressed and opportunity for advancement thwarted unfairly.

This recent multi-million dollar settlement is just one of several instances where a handful of dominant corporate players within an industry have bilaterally agreed to refrain from hiring each other’s former employees. As harmless as it may sound on the surface, the overall effect of these anti-poach arrangements ultimately prevents a free market for employees seeking a fair salary based on their experience and the demand for their expertise. 

Largest Antitrust Employment Case: $435,000,000

In 2015, in one of the most groundbreaking cases and the largest settlement to date, Adobe, Apple., Google, Intel, Intuit, Lucasfilm, and Pixar collectively agreed to pay $435,000,000 for employees working at specific positions from 2005 to 2009. This case has been lauded as the “most significant antitrust employment case in recent history” and a “legal and public policy breakthrough.” 

Schmidt National Law Group will continue to investigate “no-poach” antitrust employment claims on behalf of California employees whose compensation has been illegally suppressed and opportunity for career advancement restricted by these employers. If you or someone you know believe or have evidence of a no-poach wage-fixing conspiracy, contact Schmidt National Law Group today at 1-800-631-5656 for a confidential case review.

Regardless of their apparent losing streak, companies continue to secretly conspire to eliminate hiring competition, ultimately forcing lower wages and preventing career advancement. With no other employment options within the employee’s industry of specialty, it is nearly impossible for employees to negotiate for better treatment, salary, and other benefits. 

Late in 2016, after several reports of numerous industries still practicing “wage fixing” using these non-compete agreements between employers, the FTC and DOJ officially released policies known as the Antitrust Guidance for Human Resource Professionals. The most compelling part of the announcement was the possible criminal charges these companies may be facing if they continued with their wage-fixing practices. 

Doctors Win $54,000,000 in “No-Hire” Case

In 2019, $54,500,000 settlement was reached among doctors and their respective employers at Duke University and the University of North Carolina Health Care System. Similar to the previous employment violation legal victories, the employees alleged that a “No-Hire” pact existed that illegally fixed the doctors’ ability to seek fair compensation in accordance with their level of expertise and experience practicing medicine. 

Contact an Employee Rights Lawyer

Our antitrust and employment rights lawyers work to protect employees from wage-fixing, no-poach arrangements, retaliation, discrimination, harassment, and other workforce violations committed by their employers. It is our duty to fight for justice for victims of employment rights violations. If we don’t force big corporations to do the right thing and treat their employees fairly everyone suffers. If you or someone you know believe or have evidence of a no-poach wage-fixing conspiracy, contact Schmidt National Law Group today at 1-800-631-5656 for a confidential review of your situation. The information you provide will be protected and kept confidential. Please help us hold companies accountable for breaking the law, violating your rights and choosing profits over people.


Wiki resource: https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_Litigation

Online resource: https://www.lieffcabraser.com/antitrust/high-tech-employees/

Online resource: https://www.lieffcabraser.com/2020/02/lieff-cabraser-announces-settlement-of-knorr-and-wabtec-employee-no-poach-antitrust-lawsuit/