Antitrust Probe Into Tech Wages Called Hearsay
Consumers all know what price setting is, but do many workers know about wage setting? In this case several tech giants are accused of holding a “gentleman’s agreement” not to poach each other’s talent, which has the effect of keeping silicon valley wages for tech talent capped.
In its 2010 complaint, the Justice Department alleged that the companies had agreed to restrict the mobility of their skilled employees.
Without admitting any wrongdoing, the companies settled with the government and agreed not to enforce any agreement that refrained the companies from soliciting, cold calling or competing for employees from the other companies.
This deal failed, however, to ward off multiple civil complaints, which a federal judge eventually consolidated in the Northern District of California.
Software engineers in the class action claim that a poaching ban maintained stable internal salary structures at Adobe, Apple, Google, Intel, Intuit, Lucasfilm and Disney Pixar from 2005 to 2009.
More: Courthouse News Service