Skadden Discusses No-Poach Agreements and Antitrust in Labor Markets

Antitrust treatment of no-poach agreements continues to evolve as private cases progress, state attorneys general ramp up enforcement efforts and federal regulators further contemplate the legality of no-poach agreements.

Over the past two years, private plaintiffs have filed class action lawsuits challenging the use of no-poach commitments in franchise agreements, whereby the franchisor and/or franchisees agree not to hire each other’s employees. In most cases, plaintiffs have alleged that such provisions are unreasonable restraints of trade that should be evaluated under either the strict per se rule or “quick-look” analysis because the provisions at issue are so overwhelmingly anti-competitive that … Read more