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$415 Million Settlement Approved In Tech Worker Anti-Poaching Case
An anonymous reader writes: Adobe, Apple, Google, and Intel have been embroiled in a high-profile court case accusing them of creating anti-poaching agreements in an attempt to keep tech industry salaries under control. Now, Judge Lucy Koh has ruled that the $415 million settlement against the tech giants is fair, and will stand. Koh also cut in half the amount awarded to the attorneys in the case. The lawsuit was a class-action originally joined by about 64,000 workers. Other companies were involved with the case, and reached settlements earlier, and a few members of the class action may opt out of any settlement. But the remaining members will only get something in the vicinity of $6,000 apiece for the damage done to their earnings.
In America, anti-competitive practices between corporations are illegal. It doesn't matter if they are bidding on the same job and agree to "not compete on this one", bidding on the same employees, or simply saying "don't contact my {insert [vendor / employee / distribution] channels} and I won't contact yours."
Yes, corps can do it and get away with it every day! But if caught they might land themselves a nice fine (see above), or even worse, some time in jail. The corps have quashed the second option for just about any crime they commit, so you are stuck with the first option.
One has got to imagine though, between these practices, H1Bs, 80 hour work weeks, and other wage-lowering standards in the tech field, how many Billions these corps have saved, reinvested, and reaped as untold wealth, while only having their feet held to the fire for about 100m each in this case. They are sure to invent some fascinating practices to hold wages down further in the coming years.
Enjoy your hot soup. cause that's all they serve. on the soup line.
When the foot seeks the place of the head, the line is crossed. Know your place. Keep your place. Be a shoe.
"Only $6000" Maybe this is because I'm not an Apple/Google/Intel employee, but if I got $6k handed to me, I'd be psyched.
Would you be psyched if that's the settlement you received because your employer negotiated behind your back to keep a competitor from offering you a job that pays $20k more a year?
The Daddy casts sleep on the Baby. The Baby resists!
Exactly. The settlement is peanuts. It should be three times as high, along with substantial punitive damages.
The world's burning. Moped Jesus spotted on I50. Details at 11.
"Only $6000"
Maybe this is because I'm not an Apple/Google/Intel employee, but if I got $6k handed to me, I'd be psyched.
You need to take stock of your life if $6k is considered a financial windfall. This is basically a single paycheck to many of the professionals being affected by these illegal practices. They have likely missed out on tens of thousands of dollars in wages and are being given a big F-U by the government as well as the companies that conspired against them.
-- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
Make the settlement $100k for each victim, and maybe $2 million for the lawyers.
If you are not allowed to question your government then the government has answered your question.
For most companies, your annual salary increases are considered in percentage terms from your current salary.
Let's say the anti-poaching arrangement drove the market down so that an employee who could have made $100k/year in on open market instead took a job for $95k (by the way, this is likely a SEVERE underestimate of the market distortion of ~six of the largest market participants refusing to bid on each other's employees).
That's not a one-time $5k loss. That's a $5k loss every year for life, because it decreases the base on which future raises will be given. More than that, actually.
Assuming you're worth a 5% raise every year, the "open market" employee makes:
$100,000
$105,000
$110,250
$115,762.50
$121,550.63
--------
$552,563.13 over 5 years
With the "$5k" loss, the employee instead gets:
$95,000
$99,750
$104,737.50
$109,974.38
$115,473.09
----
$524,934.97 over 5 years
Which is a loss of $27,629.
The settlement doesn't fix the "perpetual" nature of this problem - it doesn't increase the base salary to what it would have been. It's a one time payout. Even if $6k is a fair estimate on the amount lost in base salary AT THE TIME they took the job, it's a pittance on the real loss.
Even changing jobs doesn't necessarily "restore" this lost base salary - quite a lot of employers ask for a salary history, and will base an offer on what you made previously. Or, they'll base it on the "average" they pay for that job today (which itself will be artificially suppressed because of the past collusion).
This is a HUGE giveaway to the employers involved. They saved many times over what they're paying out here. If they could do the same thing tomorrow anticipating this penalty, they would.
They have created the fairy tale of the STEM shortage. In a few years, kids will be coming out of school with their STEM degree and there will be few jobs that pay shit.
It happened with nurses. Years ago, kids wanted a guaranteed job and flocked into nursing schools because of the so called shortage. Today, we have the worst job market for nurses EVER.
Tech companies are all bullshitters when it comes to their employment practices and all of them are guilty and should be fined.
Also.... the class that damages are awarded to should include All workers of a similar calibre in the industry: not just those that the anti-poaching applied to.
Due to the economics involved. IF such and such position was poached, then I could have applied to it, Or the economic effects across the country might be such that my salary at another company would be higher than it was.
... we can assume that the company's ill-gotten gains are at least in the five billion range.
Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
Yep, Sergei and Larry have learned that being evil can fatten their billions oh so sweetly. The fine is only a light tax on the takings.
But, hey! It was cool slogan when they were just breaking into the market.
Second class citizen of the New Gilded Age