The Joseph Saveri Law Firm, Inc. represents a class of current and former employees of LG and Samsung challenging agreements between the companies not to poach or hire each other’s employees.
No-poaching agreements harm employees by suppressing employee mobility, wages, benefits and other compensation. Such agreements harm employees because they prevent workers from demanding — and collectively receiving — higher compensation. This is true whether or not the employee received an offer from another company. Such agreements constitute violations of federal and state law, including federal antitrust law.
The effects of the agreement between LG and Samsung, as Plaintiff alleges, are exacerbated because of substantial similarities between the companies. Both are Korea based electronics giants with an established Silicon Valley presence and both target high technology workers in the San Francisco Bay Area. The alleged agreement therefore affects all employees of the participating companies, by pegging and suppressing employee compensation.
Such agreements have come under fire in recent years, after the Department of Justice began investigating Google, Intel, Apple, Adobe, Lucasfilm, Intuit and Pixar in 2010 for allegedly agreeing to not poach each other’s employees. The Joseph Saveri Law firm served as co-lead counsel for a class of workers challenging the no-poaching agreements. The cases against Pixar, Intuit and Lucasfilm settled in 2013, and the remaining defendants Adobe, Apple, Google, and Intel settled in 2015, for a total settlement amount of $435 million.
The lawsuit is Frost v. LG Corporation, et al., pending in the United States District Court for the Northern District of California. The Complaint was filed on September 9, 2016.