Employers Are Advised to Proceed Cautiously Before Discussing Employee Recruitment and Compensation with Competitors as the DOJ and FTC Crack Down on Violations of Antitrust Laws

On October 20, 2016, the Department of Justice Antitrust Division (DOJ) and the Federal Trade Commission (FTC) jointly issued Antitrust Guidance for Human Resource Professionals intended to alert those involved in hiring and compensation decisions of potential violations of the U.S. antitrust laws.

Though the Guidance does not actually shed light on any new law, it undoubtedly serves as a warning to employers that the DOJ and FTC intend to aggressively enforce existing antitrust laws. As outlined in the Guidance, it is unlawful for companies to either implicitly or explicitly agree to not compete with their competitors on matters relating to employment. Such action takes shape in many forms, but potential violations of antitrust laws include...

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