Lawsuit Highlights Antitrust Exposure Related to Hiring and Compensation

A recently filed class action lawsuit serves as an important reminder that employers can face scrutiny under antitrust law through civil litigation brought by their employees, in addition to investigations and enforcement actions by federal agencies. Employers that are party to agreements regarding hiring, wage, and other employment practices with other employing entities, including even those entities within the same corporate family or structure, should carefully review the agreements with antitrust counsel to ensure compliance with antitrust and competition laws.

In October 2016, the Federal Trade Commission ("FTC") and Department of Justice ("DOJ") Antitrust Division issued guidance for companies colluding to set industry hiring and compensation standards. Specifically, the agencies warned that employers that enter into naked no-poaching or wage-fixing agreements with each other will face criminal and civil investigation and enforcement. According to an FTC press