{"id":3403,"date":"2022-09-01T13:37:09","date_gmt":"2022-09-01T17:37:09","guid":{"rendered":"https:\/\/www2.law.temple.edu\/10q\/?p=3403"},"modified":"2022-09-01T13:37:09","modified_gmt":"2022-09-01T17:37:09","slug":"doj-continues-crackdown-on-no-poach-agreements","status":"publish","type":"post","link":"https:\/\/law.temple.edu\/10q\/doj-continues-crackdown-on-no-poach-agreements\/","title":{"rendered":"DOJ Continues Crackdown on No-Poach Agreements"},"content":{"rendered":"<p>The Department of Justice (\u201cDOJ\u201d) is continuing its crackdown on alleged \u201cno poach\u201d or \u201cwage fixing\u201d market collusion between competitors.<\/p>\n<p>In January 2022, DOJ announced charges against four individuals operating home health care agencies in Maine. According to DOJ, the four defendants, whose companies are unnamed in the indictment, agreed to fix pay rates for certain types of employees and not to hire each other\u2019s workers to avoid competition. As a result of these wage-fixing and no-poach agreements, the indictment charges each defendant with a single count of felony conspiracy in violation of Section 1 of Sherman Act.<\/p>\n<p>Also in January 2022, the United States District Court for the District of Colorado held that DOJ\u2019s theory of prosecution in a no-poach case passed legal muster. In&nbsp;<em>United States v. DaVita Inc.<\/em>, the court held that non-solicitation agreements between competitors were a form of illegal horizontal market allocation. As to the lack of precedent on the matter, the court explained that \u201cas violators use new methods to suppress competition by allocating the market or fixing prices[,] these new methods will have to be prosecuted for a first time.\u201d<\/p>\n<p>DOJ\u2019s press release regarding the indictment of the home health care agencies can be found&nbsp;<a href=\"https:\/\/www.justice.gov\/opa\/pr\/four-individuals-indicted-wage-fixing-and-labor-market-allocation-charges\">here<\/a>, and the court\u2019s opinion and order denying the defendant\u2019s motion to dismiss in&nbsp;<em>United States v. DaVita Inc. <\/em>can be found&nbsp;<a href=\"https:\/\/www.govinfo.gov\/content\/pkg\/USCOURTS-cod-1_21-cr-00229\/pdf\/USCOURTS-cod-1_21-cr-00229-0.pdf\">here<\/a>.<\/p>\n<p>The takeaway of these recent developments for the business community is clear: Expect that DOJ will continue its efforts to prosecute agreements between different companies on competitive hiring terms (including salary, benefits, and circumstances in which hiring is permitted). Violations for conspiracy to restrain trade under the Sherman Act bring severe criminal penalties of up to 10 years\u2019 imprisonment and $1 million in fines for individuals. It is imperative for business leaders to be proactive in determining whether any employees participated in anticompetitive agreements and to implement necessary compliance programs. Experienced counsel can assist businesses in navigating this rapidly changing landscape.<\/p>\n<p>The full article in its original form can be found <a href=\"https:\/\/www.cozen.com\/news-resources\/publications\/2022\/doj-s-crackdown-on-no-poach-agreements-continues\">here<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p><em>Stephen A. Miller is co-chair of the White Collar Defense &amp; Investigations practice group at Cozen O\u2019Connor. <\/em><\/p>\n<p><em>Nathan J. Larkin (LAW \u201920) is an associate in the Commercial Litigation practice group at Cozen O\u2019Connor. <\/em><a href=\"https:\/\/www.linkedin.com\/shareArticle?mini=true&amp;url=http:\/\/www.cozen.com\/news-resources\/publications\/2022\/doj-s-crackdown-on-no-poach-agreements-continues\"><br \/>\n<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nathan J. Larkin (LAW \u201920) of Cozen O\u2019Connor co-authored an article with Stephen A. Miller discussing the DOJ\u2019s market collusion crackdown of no-poach and wage-fixing agreements between competitors, as showcased in United States v. DaVita Inc.<\/p>\n","protected":false},"author":33,"featured_media":3405,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12,33,13,14],"tags":[2509,2510,291,292,2175,1088,2511,2176],"coauthors":[1602,2508],"class_list":["post-3403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alumni-authored","category-antitrust","category-business-law-practice","category-corporate-governance","tag-collusion","tag-competitors","tag-department-of-justice","tag-doj","tag-no-poach","tag-sherman-act","tag-united-states-v-davita-inc","tag-wage-fixing","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>DOJ Continues Crackdown on No-Poach Agreements - The Temple 10-Q<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/law.temple.edu\/10q\/doj-continues-crackdown-on-no-poach-agreements\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"DOJ Continues Crackdown on No-Poach Agreements - The Temple 10-Q\" \/>\n<meta property=\"og:description\" content=\"Nathan J. Larkin (LAW \u201920) of Cozen O\u2019Connor co-authored an article with Stephen A. Miller discussing the DOJ\u2019s market collusion crackdown of no-poach and wage-fixing agreements between competitors, as showcased in United States v. DaVita Inc.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/law.temple.edu\/10q\/doj-continues-crackdown-on-no-poach-agreements\/\" \/>\n<meta property=\"og:site_name\" content=\"The Temple 10-Q\" \/>\n<meta property=\"article:published_time\" content=\"2022-09-01T17:37:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2022\/09\/jair-lazaro-0lrJo37r6Nk-unsplash-scaled-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Stephen A. Miller, Nathan J. 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