Don’t Enter Into Hiring Agreements with Your Competitors
Many employers may be surprised to learn that it is illegal to enter into agreements with competitors regarding employee hiring. Federal antitrust law prohibits businesses who compete with each other to enter into agreements concerning employee wages, benefits, and many other terms of employment. The U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) recently released guidance for employers on these issues, which you can access by clicking here . The guidance discusses how agreements among employers not to recruit certain employees or not to compete with one another over employee wages are illegal. These agreements do not have to be official or in writing—informal, oral agreements are also illegal. They also do not even have to be between the two companies directly, as agreements brokered by a third party will also be illegal. The guidance notes that it is even illegal for employers to share information regarding employee wages or benefits with one anothe...