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ARTICLE · 30 NOVEMBER 2022

Canada Prohibits No Poaching And Wage-fixing Agreements

Miller Thomson
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On June 23, 2022, the Competition Act (the "Act") was amended as a result of the Budget Implementation Act, 2022 (the "Amendments").

CanadaEmployment and HR
Eric Dufour
Eric Dufour
Megan Kennedy
Megan Kennedy
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On June 23, 2022, the Competition Act (the “Act”) was amended as a result of the Budget Implementation Act, 2022 (the “Amendments”). Some of the changes to the Act are not in effect yet, thus giving firms precious time to adjust and prepare. Of note, these impending changes include the criminalization of wage-fixing and no-poach agreements between employers, which may impact many firms' current practices.

The impetus for these significant changes likely stems from the 2016 joint statement issued by the U.S. Department of Justice (“DOJ”) and U.S. Federal Trade Commission, which indicated that going forward, the U.S. DOJ would criminally investigate no-poaching or wage-fixing agreements that are unrelated or unnecessary to a larger legitimate collaboration between the employers.1

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