Warning to HR Executives: You Can Be Imprisoned for No-Raid Agreements

Companies increasingly require employees to sign no-compete agreements. Some go further, and enter into mutual no-poaching agreements with peer [competitor] companies. Now, the U.S. Department of Justice has signaled it will examine no-poaching agreements as a form of illegal price-fixing under federal antitrust law (Sherman Antitrust Act). What makes this compelling is the DOJ's willingness to prosecute not only the companies but also the executives for criminal antitrust violations. For more, read this guidance from the U.S. Department of Justice (titled “Antitrust Guidance for Human Resource Professionals,” by clicking here).