NEW DOJ/FTC ANTITRUST GUIDANCE FOR HR PROFESSIONALS

The Department of Justice and the Federal Trade Commission recently published a Guide to alert HR professionals and others involved in hiring and compensation decisions to potential violations of the antitrust laws.

This is a must read for all HR professionals as the DOJ has sued several companies for violations. The guidance discusses in detail:

• Antitrust laws establish the rules of a competitive employment marketplace
• Agreements among employers not to recruit certain employees or not to compete on terms of compensation are illegal.
• Avoid sharing sensitive information with competitors

The Antitrust Guidance also contains a Questions and Answers section. Below is a sample of what this section covers.

    Question: I work as an HR professional in an industry where we spend a lot of money to recruit and train new employees. At a trade show, I mentioned how frustrated I get when a recent hire jumps ship to work at a competitor. A colleague at a competing firm suggested that we deal with this problem by agreeing not to recruit or hire each other’s employees. She mentioned that her company had entered into these kinds of agreements in the past, and they seemed to work. What should I do?

    Answer: What that colleague is suggesting is a no-poaching agreement. That suggestion amounts to a solicitation to engage in serious criminal conduct. You should refuse her suggestion and consider contacting the Antitrust Division’s Citizen Complaint Center or the Federal Trade Commission’s Bureau of Competition to report the behavior of your colleague’s company. If you agree not to recruit or hire each other’s employees, you would likely be exposing yourself and your employer to substantial criminal and civil liability.

Click here to read the Antitrust Guidance.

It has always been CARCO’s mantra that Compliance is KEY in every aspect of your hiring process.

To learn how CARCO keeps your hiring process compliant in every way, click here or speak to a CARCO Specialist at 1-866-557-5984.

 

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