Imagine being trapped in your job, unable to advance or earn more. That's the reality for many workers affected by illegal "no-poach" agreements. These secret pacts between employers crush dreams and stifle careers. Having seen the devastating impact of these agreements firsthand, we can tell you: employees deserve better. You're not alone in feeling frustrated and powerless. But there's hope.
The Hidden Threat to Your Career
Employees should be aware that it is illegal for employers to agree not to solicit or poach each other's employees. These "no-poach" agreements artificially suppress employee mobility, advancement, and pay. They're not just unfair - they're illegal. Similarly, it is illegal for employers to agree to fix their employees’ wages. We have seen no-poach agreements across various industries–from healthcare to tech to academia to agriculture.
What are No-Poach Agreements?
No-poach agreements are pacts between companies not to recruit, solicit, and/or hire each other’s employees. Often, these deals are secret, under-the-table arrangements that escape public view. Employees, on the other hand, suffer through lower wages and fewer career opportunities. Imagine wanting a new challenge, only to find that your employer and a competitor have foreclosed that possibility.
“No-Poach” Agreements Are Costly and Illegal
No-poach agreements are far from harmless. These agreements suppress opportunities for career growth, advancement, and pay—crippling employee mobility. The law is clear: colluding to hold back a company’s workforce violates antitrust laws. Employers must ensure that their conduct, particularly communications with their competitors, cannot give rise to an enforcement action.
Let's look at the top 5 no-poach antitrust settlements of all time. These cases show the serious consequences for companies caught violating antitrust laws.
The 5 Biggest No-Poach Settlements in History
$435 MILLION SETTLEMENT
- Defendants: Adobe, Apple, Google, Intel, Intuit, Lucasfilm, and Pixar
- Allegation: Secret agreements not to hire each other’s technical, creative, and other salaried employees
- Total Settlement: $435 million
- Want more info about this case?
In re High-Tech Employee Antitrust Litigation (2015) / Case No. 11-CV-02509-LHK / U.S. District Court for the Northern District of California
In this high-profile case, tech giants Adobe, Apple, Google, Intel, Intuit, Lucasfilm, and Pixar were found to have secret agreements not to hire each other’s technical, creative, and other salaried employees. Employee wages had been kept artificially low due to these agreements, limiting job prospects for thousands of skilled workers. The court found that these no-poach agreements effectively created a cartel among tech companies, severely hindering mobility and salary negotiations.
$169 MILLION SETTLEMENT
- Defendants: Pilgrim’s Pride, Tyson, Sanderson Farms, Koch Foods, and Perdue
- Allegation: Conspiracy to suppress broiler chicken growers’ pay by illegally sharing confidential grower compensation data and illegally conspiring not to recruit each other’s growers
- Total Settlement: $169 million
- Want more info about this case?
In re Broiler Chicken Grower Antitrust Litigation (2024) / Case No. 20-md-02977 / U.S. District Court for the Eastern District of Oklahoma
This class action lawsuit against the five largest chicken processing companies alleged they conspired to suppress wages through illegal no-poach agreements and illegally sharing confidential compensation data. The settlement paid by the companies compensated thousands of broiler chicken growers for compensation lost due to the anti-competitive practices.
$168.5 MILLION SETTLEMENT
- Defendants: Disney, Pixar, Lucasfilm, DreamWorks, Blue Sky, and ImageMovers
- Allegation: Conspiracy to fix and suppress employee compensation and to restrict employee mobility
- Total Settlement: $168.5 million
- Want more info about this case?
In re Animation Workers Antitrust Litigation (2015) / Case No. 14-CV-04062 / U.S. District Court for the Northern District of California
This class action lawsuit against major animation studios, including Disney, Pixar, Lucasfilm, DreamWorks, Blue Sky, and ImageMovers, alleged they conspired to suppress wages through illegal no-poach agreements. The settlement paid by the studios compensated thousands of animation workers for lost wages due to the anti-competitive practices.
$54.5 MILLION SETTLEMENT
- Defendants: Duke University and the University of North Carolina
- Allegation: Entering into no-poach agreements for medical faculty
- Total Settlement: $54.5 million
- Want more info about this case?
U.S. v. Duke University and UNC (2019) / Case No. 20-cv-00470 / U.S. District Court for the Middle District of North Carolina
This class action lawsuit alleged Duke and UNC of entering into no-poach agreements for non-medical faculty. The settlement exposed how these arrangements hurt not just corporate sectors but also educational institutions, limiting the career paths of faculty members.
$48.95 MILLION SETTLEMENT
- Defendants: Knorr-Bremse AG and Westinghouse Air Brake Technologies Corporation
- Allegation: Agreement to not hire each other’s workers
- Total Settlement: $48.95 million
- Want more info about this case?
In re Railway Industry Employee No-Poach Antitrust Litigation (2020) / Case No. 2:18-mc-00798-JFC / U.S. District Court for the Western District of Pennsylvania
This class action involving leading railway companies Knorr-Bremse AG and Westinghouse Air Brake Technologies Corporation alleged that they agreed not to hire each other’s workers.
How Cotchett Pitre & McCarthy Can Help
No-poach agreements rob workers of opportunities and fair wages. But with increased awareness and legal action, we can put an end to these harmful practices. If you suspect you've been affected by a no-poach agreement, don't stay silent. The experienced attorneys at CPM Legal can help you understand your rights and fight for justice.
Need an antitrust attorney? Cotchett Pitre and McCarthy is one of the nation’s most successful and well-respected antitrust and employment law firms, representing individuals negatively impacted by employers' no-poach agreements. For general information about CPM’s no-poach practice, see this link: https://www.cpmlegal.com/practices-Unlawful-Agreements-to-Suppress-Wages
PartnerElizabeth Tran Castillo is a partner in the San Francisco Bay Area office of Cotchett, Pitre & McCarthy, LLP and a member of the Antitrust & Global Competition practice group. Her work focuses on class actions and other complex ...