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ARTICLE · 16 OCTOBER 2012

Clearance: Proskauer's Quarterly Antitrust Update - Fall 2012

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The exchange of wage-related information between two competitors may not be a per se violation of antitrust laws, according to a Federal court in Michigan.

United StatesAntitrust/Competition Law

Exchange Of Employee Wage Information: What Is Permitted Under The Antitrust Laws?

The exchange of wage-related information between two competitors may not be a per se violation of antitrust laws, according to a Federal court in Michigan. The decision, from the U.S. District Court for the Eastern District of Michigan, Cason-Merenda v. Detroit Medical Center, et al ,1 follows two cases filed by the Department of Justice (DOJ) in 2010 that alleged firms conspiring to fix the terms of employment had committed per se violations of § 1 of the Sherman Act.2 The more recent case characterized the issue as a "very close question." An analysis of the decisions shed some light on how to avoid allowing employment related information exchanges cross the line into a violation of the Sherman Act under either the per se rule or the rule of reason.

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