Several tech giants as well as employers in related industries continue to deal with the fallout of the so-called “no poach suits” alleging they colluded to keep down salaries by agreeing not to poach each other’s employees.
After several of the companies attempted to settle claims earlier this year, a Northern California U.S. District Judge’s rejected the settlement amount as insufficient, resulting in an appeal to the Ninth Circuit.
Despite the settlement, a series of shareholder derivative suits also has sprung up over the last year, with plaintiffs’ lawyers alleging the tech companies harmed their companies (and therefore shareholders) because the alleged “no poach pacts” could have cost their companies opportunities to hire the best talent and help grow profits.
It seems, for now, the litigiousness surrounding the alleged no poach pacts is far from over.
Employers should revisit their recruitment policies and practices, and manager training (including at the C level and Board level), to make sure that at no level in the company is there potential for collusion with competitors on the recruitment of each other’s employees.