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News & Press: HR

When Anti-Raiding = Anti-Trust

Tuesday, October 2, 2018   (0 Comments)
Posted by: Alyce Ryan
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Written by: Christine V. Walters, JD, MAS, SHRM-SCP, SPHR , FiveL Company 

You spend significant time and money to recruit, hire, train and retain your employees. That is an investment most employers want to protect. So, when it comes to corporate raiding or poaching, some employers require those with whom they do business to sign no-poaching or anti-raiding agreements. These are agreements in which two entities agree to not solicit one another's employees. They are also getting national attention and under scrutiny by Congress and others as violating anti-trust law. Why? There is a sense that agreements between companies to not employ one another’s employees limits upward mobility for those employees and reduces their individual ability to advance and compete in the market.  

There are currently at least four pieces of legislation pending before Congress aimed at barring or limiting various employment agreements including non-disclosures, non-competes and more. In July, at least 10 state AG’s sent a letter and launched an investigation of no-poaching agreements in the franchise industry. And, it's not just anti-raiding agreements that are being challenged. Tesla is currently defending its practice of requiring all of its employees to sign confidentiality agreements.

HR professionals, small business owners and managers may want to read the Department of Justice's 2016 publication, "Anti-Trust Guidance for Human Resource Professionals." Then, register for this month's webcast, "Right Tool, Wrong Time? Employment Contracts Under Fire."