10.18.2010 Recent Antitrust Division Enforcement Action Casts Doubt on the Permissibility of Certain Employee Non-Solicitation Agreements
The Department of Justice’s Antitrust Division recently filed a significant antitrust action against some of the largest technology companies in the country – Adobe, Apple, Google, Intel, Intuit and Pixar – accusing them of agreeing not to solicit each other’s employees for open job opportunities. The action, United States v. Adobe Systems, Inc., et al., Case No. 1:10-CV-1629 (D.D.C.), alleges that these agreements have had an anticompetitive effect on their employees’ ability to change jobs and increase their compensation and benefits through lateral movement, thus violating Section 1 of the Sherman Act.