Labor Market Competition: No-Poach Agreements Explained

The current job market is highly competitive. Skilled workers are in high demand, and employers constantly seek ways to attract and retain top talent. However, some companies may resort to practices that limit employee mobility, such as no-poach agreements.

Understanding No-Poach Agreements

No-poach agreements are illegal deals between competitors who agree not to recruit or hire each other's employees. Often informal ("gentlemen's agreements"), these agreements can be written or verbal promises to avoid contacting competitors' employees, not to hire them, or not to match their job offers.

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Why Are No-Poach Agreements Controversial?

The legality of no-poach agreements is under scrutiny. In the United States, the Department of Justice (DOJ) views them as anticompetitive and a violation of federal antitrust laws. The DOJ argues that these agreements suppress wages and limit employee mobility, hindering a healthy job market. They are harmful to employees because they:

  • Limit your opportunities: Fewer companies can recruit you, hindering your job search.
  • Lower your bargaining power: Limited competition for your skills means potentially lower wages and benefits.
  • Stifle innovation: Restricted movement of talent across companies can hinder the flow of ideas.

No-poach agreements are surprisingly common, affecting industries like technology, healthcare, and professional services, among others.

How the Joseph Saveri Law Firm, LLP is Fighting For Workers

Our firm has successfully represented numerous employees impacted by no-poach agreements and has many other litigations underway:

Our Firm Will Fight for You

Our firm is committed to protecting employee rights. Our experienced attorneys are at the forefront of this conflict and our track record of successfully obtaining landmark results in these cases illustrates our commitment to protecting employees, no matter the company size or industry. 

Please contact us if you or anyone you know has been harmed by illegal no-poach or non-compete agreements. We will answer your questions and evaluate your situation without charge, and any conversations will be kept confidential as provided by law. We are here for you when you need us.