Thank you for sharing!

Your article was successfully shared with the contacts you provided.
U.S. Department of Justice building in Washington, D.C.

“No poach” agreements, the ubiquitous practice where companies agree not to recruit each other’s employees, are facing increased scrutiny from the federal government, lawmakers, state enforcement agencies and private class actions.

The recent spate of state enforcement actions and private class actions against fast-food companies and other big chain franchises provide a warning sign for employers across industries about potential liability for agreements that might suppress wages and limit employee advancement. The flurry of activity comes two years after the Justice Department signaled it would consider criminal charges if companies engage in no-poach and wage-fixing agreements.

“There are more hard-line stances on noncompetes and no-hires are in the crosshairs,” said King & Spalding litigation partner Cheryl Sabnis in California. “How do employers handle that? Companies are having to rethink old models. It’s just not as simple as it once might have been.”

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.