DOJ Investigates Google, Apple, and Others For 'No Poaching' Agreement
CSHARP123 writes "The Department of Justice launched an investigation into the 'No Poaching' agreement between Apple and Google in 2010, but details of the case were only made public for the first time yesterday. TechCrunch was the first to sift through the documents, and has uncovered some ostensibly incriminating evidence against not only Google and Apple, but Pixar, Lucasfilm, Adobe, Intel, and Intuit, as well. According to the filings from the U.S. District Court for the Northern District of California in San Jose, these companies did indeed enter 'no poach' agreements with each other, and agreed to refrain from soliciting employees. The documents also indicate they collectively sought to limit their employees' power to negotiate for higher salaries."
If employees have the right to form unions, I don't understand how this is that much different. Different sets of rules for different folks ain't in anyone's interests.
As my wise Republican candidates have pointed out, this kind of thing is proof that the free market--left to itself and without any government oversight, regulation, or interference--will make things better for all of us. The DoJ needs to get off the backs of these job-creating companies and let them give their employees the freedom that Jesus and Capitalism can only provide when we have a free market with no regulation or oversight. Anything less is socialism.
SJW: Someone who has run out of real oppression, and has to fake it.
Nothing evil about this?
we need that money to fuel the lawyers for all our patent violation lawsuits against each other.
I'm sure "SlashdotMedia" will improve on all the wonders that Dice Holdings blessed us all with
So what? Cartels will naturally fall apart given no government interference. It is in their best interests to cheat on this agreement. Its just like the prisoner's dilemma, while it might be best for all of them to cooperate, they won't because they want an advantage over their competitors. Cartels never last so long as there is a lack of government involvement.
Taxation is legalized theft, no more, no less.
I notice Microsoft is notably absent from this list. Is it because no one in the tech world is worried about them stealing talent?
in the form of IP laws.
I'm sure "SlashdotMedia" will improve on all the wonders that Dice Holdings blessed us all with
Get a load of that coincidence. it 'coincides' just 2 days after sopa protests, and involves almost all major technology companies that have major stakes on internet. Just like how the megaupload bust 'coincided' a day after sopa protests, yesterday.
Read radical news here
It's funny that this drops the same day as the Fortune list of best companies to work for. I see many name here at the top of that list. Not quite sure what to think... I dislike secret corporate agreements, especially to keep salaries down, but I had a fellowship at Intel and found it to be a really good environment, and my colleagues thought so too. At the same time one couldn't help but to notice the incredible number of green badges (contractors) used while Intel posts record quarters. I suppose when you are as big as Intel, it's nearly impossible to be all good, or all evil.
Most B2B contracts I've seen, particularly ones involving services, have a "non-solicit" agreement where each party agrees not to hire the other's employees away for a set period of time. It's not uncommon and I'd be willing to wager that all of these companies have done business with one another in some way, shape or form. Entering into this kind of an agreement without legitimate business that might expose the parties to one another's valuable human resources might be a problem. The part about collectively limiting their employees rights to bargain for raises...well...I don't see how that's possible. My philosophy (and practice) has always been to ask for what you want...if you don't get it, move on...if you DO get what you ask for...then turn right around and decide you want something else...I'd rather have you be the competition's problem. :-)
I used to fear clowns...but I'm discovering that chimps are far, far, worse.
Hang on. Isn't this essentially trying to operate a tech-labour market cartel?
...years ago. So if poaching is illegal whats wrong with agreeing not to poach>?
Nobody except Ron Paul and the Libertarians who want government completely out of company business.
It must be great to be a C-level executive, with a near limitless salary, and not subject to this kind of underhanded collusion because you're making all the rules and approving your own raises.
Ask me about my sig!
The enrichment of those who own has always far exceeded that of those who actually create.
It's the way of the world.
Not right, but how it is.
Check your premises.
So Google offered me less in salary than they might have without this agreement. I wonder if I could sue them for lost income.
"Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
Only acceptable when done by employers, not employees. Got it.
From what I hear, this whole cozy arrangement has been disrupted by Facebook, which started poaching techies from all of the above with higher pay...
There doesn't seem to be too much clear thinking taking place here.
How about the IRS. If the Fed is going full force against silicone valley they certainly want the IRS.
That's right! That's why men should get regular pregnancy tests, and that's why bald people should shampoo daily, and that's why blind people shouldn't be allowed to have seeing eye dogs. Any recognition of differences is imposition of inequality! Fight the power! WHEELCHAIRS FOR EVERYONE!
Digging in to the "settlement" from the DOJ back in September, this line was a gem:
"The proposed settlement, which if accepted by the court will be in effect for five years, prohibits the companies from engaging in anticompetitive no solicitation agreements. Although the complaint alleges only that the companies agreed to ban cold calling, the proposed settlement more broadly prohibits the companies from entering, maintaining or enforcing any agreement that in any way prevents any person from soliciting, cold calling, recruiting, or otherwise competing for employees."
So you have companies engaged in criminal collusionary behavior and what do they get? They have to monitor themselves for five years and then everything goes back to normal. Oh, and wait, even though we were only talking about cold-calling, by the way, monitor yourselves for the next few years to make sure you are not breaking the law. Yeah, that last part was really just added for no reason. Please ignore the wage suppresion behind the curtain.
All we get is a pittance of a civil suit.
Wonder-fricking-ful.
Of course, this also has nothing to do with requesting more H-1B access and the like, the whole "we can't find good people", please move on, nothing to see here...
Power corrupts; absolute power, corrupts absolutely. There is no surprise here, simply the time it took for the companies to be investigated.
"Consensus" in science is _always_ a political construct.
When I worked for HP about 20 years ago they used to herd all the employees into presentations every year at annual raise time and tell us with great pride that they had their HR people meet with HR people from every other big engineering employer in the bay area to define job descriptions and benefits including salaries, vacation, and annual raises. The purpose of this was to indirectly tell everyone "don't bother looking for work elsewhere- you won't get a better deal". I eventually went to work for a smaller company that wasn't in that "negotiating" (i.e. price-fixing) group for a substantial raise and an extra week of vacation time.
Yes.
Collusion among horizontal competitors (i.e. not up-and-down the supply chain, but across it with other companies on the same level of industry) is problematic (read: potentially illegal and contact a good antitrust lawyer) under the Sherman Anti-Trust Act.
The Act technically limits "restraint of trade," but that would, if read literally, prevent all commerce. Basically, Congress left it completely up to the courts to determine what anti-trust policy would be, by legislating very generically, in part because every case is quite different.
The courts don't like horizontal collusion.
The major players implicated here control enough of the market that the anti-trust people in government (the DOJ and the FTC are the big players, though I think the SEC and a few others sometimes nibble) will not be happy.
-- IANAL, this isn't legal advice, and definitely isn't legal advice for you. Also, Squee!
By Apple they mean, ladies and gentlemen, Mr. Steve Jobs. According to the article he himself had a major role in this unfair affair. Palm CEO even warned him about this being "likely illegal" when refused Jobs' proposal. I have been reading Jobs' biography and was a little bit surprised to find out this. He obviously disliked this kind of unfairness, but apparently had really given greed his little finger.
*** Fruits get old fast.
The primary function of the U.S. Department of Justice is the protection from legal impunity of the U.S. President of the United States of America. All other function pale in significance.
The continued life of the Secetary of the U.S. Department of Justice depends on the perception of his willingness to die for his beloved President, the U.S. President of the United States of America.
The MPAA and RIAA pay the family of Barak Obama and all families of each and every Congress members and all offices of the Federal Cabinet Secetaries and down to mid-level beauracats for the purpose of money. Money to keep THEM. Money to endure THEM. Money to adorate THEM. Money to buy THEM a life. Not a life everlasting, just a few more minutes to snort a bit more grams of coke, so THEY can fell like somebody.
DOA = Dead On Arival.