Anti-Competitive Actions By Employer

[phuongt31]

What is the name of your state (only U.S. law)? California

Hi -

Can an employer make agreements with competitors as to not recruit/hire eachother's employees? At the same, not pay their employees market wages?

 

[drruthless]

What is the name of your state (only U.S. law)? California

Hi -

Can an employer make agreements with competitors as to not recruit/hire eachother's employees? At the same, not pay their employees market wages?

Yes and yes, as long as 'market' wages come out to the employee receiving at the least minimum wage.

..__________________________
~ Those who cannot hear an angry shout,
may strain to hear a whisper.

 

[cbg]

What is the name of your state (only U.S. law)? California

Hi -

Can an employer make agreements with competitors as to not recruit/hire eachother's employees? At the same, not pay their employees market wages?

Yes, they can, within certain limits. I've even known of one case where the court ordered such an agreement.

Are the not-market wages above minimum wage? If so, they can do that too.

 

[phuongt31]

Thank you for the opinions.

What are the "certain limits" to which they can agree to not recruit each other's employees?

 

[cbg]

There's usually some kind of limitation. If Company A and Company B have such an agreement, and you leave company A and go to work for Company C, and then you leave Company C and want to work for Company B, the agreement between A and B should not preclude your doing so in that case. A can't prevent you going to work for B FOREVER, but B can be stopped from raiding A for employees.

 

[phuongt31]

Okay -

Thank you again for your explanation. Although, it is definitely not what I expected to hear, but from the clarity in explanation, your opinion sounds very credible.

Have a great day!