Issue link: http://psai.uberflip.com/i/1010486
W EEKLY EDITION AUGUST 1, 2018 P AGE 3 CONTINUED ON PAGE 4 Hiring and Employment Decisions May Have Antitrust Implica tions for Your Company Part II of II By Karleen Kos, PSAI Executive Director, based on Department of Justice Communications With a shortage of drivers, a thriving economy, and more to do than hours in the day, the last thing most companies want to worry about is antitrust violation. It seems like something that should only affect "big" firms. Yet antitrust issues ar e not confined to large companies. Violations can happen in small companies too, and the friendly nature of the portable sanitation industry means it is especially important our members be aware of where the lines fall between "friendly cooperation" and ac tivities that would run afoul of antitrust rules. Last week we provided a broad overview of antitrust issues that may affect your company in the human resources arena. This week, we dig deeper into some specific questions. The following information is bas ed on an excerpt from a US Department of Justice (DOJ) Antitrust Division communication to human resources professionals from October 2016. It has been shortened and adapted to the portable sanitation industry. You can read the original in its entirety here . Question: We spend a lot of money to recruit and train new employees. At a trade show, I mentioned how frustrated I get when a recent hire jumps ship to work at a competitor's company. A colleague at a competing firm suggested that we deal with this problem by agreeing not to recruit or hire each other's employees. She mentioned that her company had entered into these kinds of agreements in the past, and they seemed to work. What should I do? Answer: What that colleague is suggesting is a no - poaching agreement. In the eyes of the law, that suggestion amounts to a solicitation to engage in serious criminal conduct. You should refuse her suggestion. If you can comfortably let her know that practice is illegal, do so. If not — and/or if you believe the practice is ngoing and may be harming your company's ability to recruit workers — consider contacting the Antitrust Division's Citizen Complaint Center or the Federal TradeCommission's Bureau of Competition to report the behavior of your colleague's company. If you agree not to recruit or hire each other's employees, you would likely be exposing company to substantial criminal and civil liability. Question: Wage growth seems to be out of contr ol. Recently, an industry colleague proposed that we could solve this problem by reaching out to other industry leaders to establish a more reasonable pay scale for our employees. Is this legal?