Antipoaching
Antipoaching (or no-poach agreement) is an anti-competitive conduct where companies conspire not to hire each other's employees.[1]
Antipoaching agreements, or no-poach agreements, are related to non-compete clauses, but distinct -- no-poach agreements are among employers, non-compete clauses are between employer and company. In the United States, antipoaching agreements have been widespread among franchise businesses: Research has found that 58 percent of major franchisors' contracts in 2016, including those of McDonald's, Burger King, Jiffy Lube, and H&R Block, contained agreements not to hire the workers of other franchisees.[2] Some franchisors have since stated that they would drop those agreements.[3]
Antipoaching agreements may be illegal under U.S. antitrust law in some circumstances.[4] Major high-tech companies in the United States, such as Adobe, Apple, Intuit, Intel, eBay, Google, LucasFilm and Pixel, entered into at least one no-poach agreement. These firms reportedly engaged in the following behaviors: "Managers informed recruiters which potential hires were off-limits and some human resources departments maintained written lists. Some agreements included additional anticompetitive restraints, such as prohibition of bidding wars. Enforcement was straightforward. In cases where a firm violated an agreement, its counterparty often contacted a senior manager at the violating firm, who would then put a stop to the violation." These tech firms were the basis of the High-Tech Employee Antitrust Litigation. A 2025 study found that this collusion reduced wages at the colluding firms by 5.6%, reduced stock bonuses for employees, and led to worse job satisfaction.[5]
See also
[edit]References
[edit]- ^ Apple, Google, others settle antipoaching lawsuit for $415 million - CNET, September 3, 2015, Lance Whitney, cNet.com, retrieved at 2 March 2017
- ^ Alan B. Krueger and Orley Ashenfelter, "Theory and Evidence on Employer Collusion in the Franchise Sector" (2018).
- ^ Jeff Stein, "7 fast food chains agree to drop ‘no-poaching’ clauses," The Washington Post, July 12, 2018.
- ^ Antitrust Division, U.S. Dept. of Justice, "No-poach approach," Spring 2019.
- ^ Gibson, Matthew (2025). "Employer market power in Silicon Valley". The Economic Journal. Archived from the original on October 15, 2025.