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ARTICLE · 01 NOVEMBER 2010

Does Cold-Calling Curb Competition?

Morris, Manning & Martin, LLP
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On September 24, 2010, the U.S. Department of Justice ("DOJ") filed suit against six high-tech companies - Adobe Systems, Apple, Google, Intel, Pixar, and Intuit - charging that their agreements to refrain from "cold calling" each other’s employees for employment are illegal under federal antitrust law.

United StatesEmployment and HR
Jason D'Cruz
Jason D'Cruz
Brian Harris
Brian Harris

On September 24, 2010, the U.S. Department of Justice ("DOJ") filed suit against six high-tech companies - Adobe Systems, Apple, Google, Intel, Pixar, and Intuit - charging that their agreements to refrain from "cold calling" each other's employees for employment are illegal under federal antitrust law.  The DOJ asserted that such non-solicitation agreements restrained competition for employees and likely deprived employees of competitively important information and access to better job opportunities.

The DOJ characterized non-solicitation agreements as "illegal per se," or automatically illegal.  While the lawsuit focused on high-tech labor, the DOJ suggested that its views are not necessarily limited to that market, and that it "continues to investigate other similar no solicitation agreements."

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