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ARTICLE · 18 FEBRUARY 2022

DOJ Survives Challenges To Labor Market Prosecutions

Duane Morris LLP
Duane Morris LLP
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So far, the DOJ's labor market prosecutions are holding up and will continue to pose a risk for companies engaged in labor market collusion.

United StatesAntitrust/Competition Law

So far, the DOJ's labor market prosecutions are holding up and will continue to pose a risk for companies engaged in labor market collusion.

A little over a year after bringing its first “no-poach” prosecution, the U.S. Department of Justice's Antitrust Division (DOJ) defeated a motion to dismiss an indictment in a closely watched decision that may make it more difficult for defendants to challenge such indictments in the future. On January 28, 2022, in United States v. DaVita Inc., Judge R. Brooke Jackson of the U.S. District Court for the District of Colorado ruled that naked horizontal nonsolicitation agreements that allocate the market―i.e., those that are not ancillary to a legitimate procompetitive business purpose―are per se violations of the Sherman Act. Restraints on soliciting or hiring employees that are subordinate, collateral and necessary to a legitimate transaction, such as a collaboration agreement, that may enable companies to offer goods or

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