Some of the largest tech companies are reportedly close to settling allegations that they colluded to keep down wages through no-poaching agreements, according to The Wall Street Journal.
Apple, Adobe Systems, Google, Intel, Intuit, and Pixar are reportedly looking to settle the allegations to avoid a courtroom face-off with the Justice Department. The companies have been trying to persuade the government that nonpoaching agreements are not anticompetitive because they help ensure that employees can work on projects with other firms without fear of being stolen away.
The DOJ asserts that such agreements can hurt employees by limiting their ability to find a better job or higher salary. In court, however, the onus would be on the Justice Department to prove that no-poaching agreements not only were purposely arranged but that they had a negative impact on tech workers, the Journal said.
At the same time, if the government were to win such a case, that could leave the companies open to private lawsuits from employees and bar the no-poaching practice totally.
Theinto the hiring practices among major tech players last year. Some companies, such as Microsoft and IBM, have already been cleared.
Apple - USE TAG
reading•Report: Tech firms close to settling no-poach case
Jan 23•Netflix to join MPAA? iPhones to go OLED in 2020
Jan 23•12 awesome cheap phones you can buy right now
Jan 22•Qualcomm didn't have enough power to hurt chip competition, expert testifies
Jan 22•Samsung 15.6-inch OLED laptop screens enter production in mid-February