DOJ Action Is A Cautionary Tale On Employer No-Poach Pacts

By Eric Walz and Adam Shafran (February 2, 2021, 5:10 PM EST) -- In what should be a warning for businesses and in-house counsel, an employee no-poach agreement led the U.S. Department of Justice to indict Surgical Care Affiliates LLC and its successor SCAI Holdings LLC, or SCA, on antitrust conspiracy charges in January.

According to the two-count indictment, believed to be the first to arise from a no-poach agreement, executives of SCA met with two of its competitors and agreed not to solicit each other's senior-level employees. 

Email correspondence among SCA employees and between SCA employees and third-party recruiters described employees working for those competitors as off limits. 

Other unidentified companies and individuals, deemed...

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