The U.S. Department of Justice has been cracking down on no-poach agreements in recent years, with high-profile cases such as those against Silicon Valley companies like Apple, Google, and Intel. But what exactly are no-poach agreements, and why are they coming under scrutiny from the DOJ?

A no-poach agreement is an agreement between two or more companies not to hire each other`s employees. These agreements can be explicit, with a written contract signed between the parties, or they can be implicit, with an understanding between the companies.

While the intention behind these agreements may seem innocent – to avoid poaching top talent from each other – the DOJ argues that they are anti-competitive and violate antitrust laws. By agreeing not to hire each other`s employees, companies are essentially limiting the job opportunities available to those employees. This lack of competition can also lead to lower wages and benefits for those employees.

The DOJ has been particularly aggressive in pursuing no-poach agreements in the tech industry, where high-skilled workers are in high demand. In 2010, the DOJ sued a number of tech companies including Apple, Google, and Intel over no-poach agreements and settled with them in 2015. Since then, the DOJ has continued to investigate and prosecute similar cases.

However, not all no-poach agreements are created equal in the eyes of the DOJ. Some agreements, such as those between companies that are not direct competitors, may be deemed legal. Additionally, agreements that are part of a larger legitimate collaboration between companies may also be considered legal.

If your company is considering a no-poach agreement with another company, it`s important to review it carefully with legal counsel to ensure that it complies with antitrust laws. At the same time, companies should also be careful not to engage in any hiring practices that could be seen as poaching, such as actively recruiting employees from a competitor.

Overall, no-poach agreements are a topic to take seriously when considering hiring practices. With the DOJ becoming increasingly vigilant in enforcing antitrust laws, it`s important for companies to stay up to date on the latest developments in this area.