Report: DOJ nears deal with tech firms on staff poaching

The DOJ may soon reach a settlement with Google, Adobe, Apple and others after investigating agreements not to poach staff

The U.S. Department of Justice is nearing a settlement with technology vendors including Apple, Google and others over an investigation of their hiring practices, according to a report.

The DOJ began an investigation in June last year into an alleged agreement among technology companies not to poach one another's staff. At the time, the investigation surprised antitrust and employment law experts, who noted that there was no shortage of other antitrust problems to which the DOJ could turn its attention, and that businesses in many states could use non-compete agreements in employment contracts to prevent competitors poaching their staff.

Now the DOJ is wrapping up negotiation of a settlement with a number of the technology companies concerned by the investigation, according to The Wall Street Journal.

By agreeing a settlement, Google, Apple, Intel, Adobe Systems, Intuit and Pixar Animation could avoid appearing in court, said the report, citing people familiar with the matter.

Staff with inside knowledge of how a competitors' products are built are clearly a valuable resource. But IT vendors are often forced to collaborate with their competitors to ensure that products work well with one another, requiring a degree of trust between the companies. Agreeing not to poach staff could be one way to build that trust.

While such agreements may help technology vendors, by making it easier to retain key staff and to cooperate on product development, the reduced competition for staff is likely to make it harder for employees to negotiate salary raises.

The DOJ's investigation initially concerned many more companies, but Microsoft, IBM and Yahoo are no longer among them, the report said.

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags U.S. Department of Justicebusiness issuesantitrustAdobe SystemsIntuitlegalPixar Animation StudiosintelApplepersonnelGoogle

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?