Antitrust: Labor law: guidance for HR professionals:
hiring and compensation:
October 20, 2016, the Federal Trade Commission and the
Justice Department’s Antitrust Division issued guidance for human resource
(HR) professionals and others who are involved in hiring and compensation
decisions. HR professionals are often in the best position to ensure their
companies’ hiring practices comply with the law and this guidance will help
educate and inform them about how the antitrust laws apply to the employment
arena.
Workers are entitled to the benefits of a competitive
market for their services. They are harmed if companies that would ordinarily
compete against each other to recruit and retain employees agree to fix wages
or other terms of employment or enter into so-called “no-poaching” agreements
by agreeing not to recruit each other’s employees.
Going forward, the Justice Department intends to
criminally investigate naked no-poaching or wage-fixing agreements that are
unrelated or unnecessary to a larger legitimate collaboration between the
employers. These types of agreements eliminate competition in the same
irredeemable way as agreements to fix the prices of goods or allocate
customers, which have traditionally been criminally investigated and prosecuted
as hardcore cartel conduct. Agreements that do not constitute criminal
violations may still lead to civil liability under statutes enforced by both
agencies.
Antitrust Red Flags For Employment Practices :
(October 20, 2016, FTC
and DOJ Release Guidance for Human Resource Professionals on How Antitrust Law
Applies to Employee Hiring and Compensation).
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