Cabraser, Heimann & Bernstein, a law firm, has announced that they are filling a class-action lawsuit against several tech companies, including Apple, regarding “no solicitation” agreements. These agreements of course, helped to prevent companies in said agreement from hiring each other’s employees. The suit is being brought on by Siddharth Hariharan, a Lucasfilm engineer who […]
" />

Apple and Others Under Suit for ‘No Solicitation’ Agreements

apple_hq.jpgCabraser, Heimann & Bernstein, a law firm, has announced that they are filling a class-action lawsuit against several tech companies, including Apple, regarding “no solicitation” agreements. These agreements of course, helped to prevent companies in said agreement from hiring each other’s employees. The suit is being brought on by Siddharth Hariharan, a Lucasfilm engineer who argues that these agreements stifle workforce competition, and thus, worker pay.
Here’s a lengthy excerpt:

“My colleagues at Lucasfilm and I applied our skills, knowledge, and creativity to make the company an industry leader,” stated Mr. Hariharan. “It’s disappointing that, while we were working hard to make terrific products that resulted in enormous profits for Lucasfilm, senior executives of the company cut deals with other premiere high tech companies to eliminate competition and cap pay for skilled employees.”

“Competition in the labor market results in better salaries, enhanced career opportunities for employees, and better products for consumers,” stated [attorney Joseph] Saveri. “We estimate that because of reduced competition for their services, compensation for skilled employees at Adobe, Apple, Google, Intel, Intuit, Lucasfilm, and Pixar was reduced by 10 to 15 percent. These companies owe their tremendous successes to the sacrifices and hard work of their employees, and must take responsibility for their misconduct.”

The report goes on to mention that these anti-poaching agreements were first put in place by Lucasfilm and Pixar in 2005, with Apple, Google, Intel, and Intuit joining later. The agreements began to fall apart around 2009 apparently. The suit is looking for compensation and treble damages.

We’ve heard of this exact case before in the past, with the U.S. Department of Justice having to step in and bar these companies from engaging in this activity again.

For what it’s worth, I hope Mr. Hariharan wins. Agreements like these can only hurt workers, and not help them.

Continue reading:

TAGS: