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ARTICLE · 27 JULY 2021

The ‘No-Poach' Approach: Antitrust Enforcement Of Employment Agreements

Antitrust enforcement of conduct in labor markets has continued to ramp up substantially during the past decade...

United StatesAntitrust/Competition Law

Introduction

Antitrust enforcement of conduct in labor markets has continued to ramp up substantially during the past decade, with particularly intense scrutiny on agreements between employers of different companies not to recruit or solicit employees of another, often called 'no-poach' agreements.

Although these agreements have been subject to review for many years, the US antitrust agencies – the Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ) (together, the Antitrust Agencies) – first issued formal guidance indicating that the DOJ would criminally prosecute no-poach agreements and other forms of collusion in the labor market in 2016. Until that point, enforcement had been mostly focused on the healthcare and technology markets and only in the civil context, analyzed under the rule of reason.

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