Antipoaching Explained

Antipoaching should not be confused with Anti-poaching.

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] Allegations about such agreements among major high-tech companies, including Apple and Google, were the basis of the High-Tech Employee Antitrust Litigation.

See also

Notes and References

  1. https://www.cnet.com/news/apple-google-others-settle-anti-poaching-lawsuit-for-415-million/ Apple, Google, others settle antipoaching lawsuit for $415 million - CNET
  2. Alan B. Krueger and Orley Ashenfelter, "Theory and Evidence on Employer Collusion in the Franchise Sector" (2018).
  3. https://www.washingtonpost.com/business/2018/07/12/fast-food-chains-agree-drop-no-poaching-clauses/ Jeff Stein, "7 fast food chains agree to drop ‘no-poaching’ clauses,"
  4. Antitrust Division, U.S. Dept. of Justice, "No-poach approach," Spring 2019.