The Antitrust Division of the Department of Justice
(“DOJ”) recently announced its first-ever criminal
wage-fixing prosecution. The DOJ likely intends this case to be a
wake-up call to companies, reinforcing that competition laws apply
equally to wages paid to employees and to prices for goods and
services. Companies and individuals should take note of this
development, update their trainings and compliance programs as
appropriate, and recognize that wage fixing could lead to federal
criminal prosecution and even jail time.
The Facts
On December 10, 2020, the DOJ announced that a federal grand jury indicted
the former owner of a therapist staffing company for participating
in a wage-fixing conspiracy. The indictment alleges that Neeraj
Jindal and his co-conspirators agreed to fix prices by lowering
rates paid to healthcare workers. For approximately five months in
2017, according to the indictment, Jindal's company paid
lower rates to healthcare workers in
