How to enforce a non-compete without a non-compete.
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Last year there was discussion about the DOJ's investigation of alleged improper hiring practices by companies like Google, Intel, IBM, and Apple. Apparently, the DOJ has stepped up the investigation according to a Wall Street Journal article. According to the article, the inquiry focuses on a pact amongst technology giants not to hire each other's employees:
The inquiry is focused on whether companies, particularly in the technology sector, have agreed not to recruit each others' employees in ways that violate antitrust law. Specifically, the probe is looking into whether the companies' hiring practices are costing skilled computer engineers and other workers opportunities to change jobs for higher pay or better benefits.
Apparently, the DOJ is struggling with how to challenge the practice because it has antitrust ramifications and results in keeping wages down.
What a great deal for the employer: Prevent your employees from leaving and keep their salary down at the same time without having to worry about the enforceability of a non-compete agreement. Most employers constantly have to worry about the departure of talented employees to their competitors for more money. If the allegations are true, that concern has been eliminated in portions of tech world.
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