There’s Some New Poaching-Related Guidance from the U.S. Government, and It Can Mean Criminal Prosecution

ERE Media

Daniel J. Green, an Associate of the Firm in the Employment, Labor & Workforce Management practice, in the firm’s New York office, authored an article in ERE Media, titled “There’s Some New Poaching-Related Guidance from the U.S. Government, and It Can Mean Criminal Prosecution.”

Following is an excerpt:

The most important takeaway from the Guidance is that recruiters should generally avoid entering into agreements with colleagues at other firms. For example, informal verbal agreements to recruit from different schools or to reduce the value of signing bonuses, can give rise to criminal liability.

Employees responsible for recruiting should also be careful about what they communicate to colleagues at other firms. “Even if an individual does not agree explicitly to fix compensation or other terms of employment, exchanging competitively sensitive information could serve as evidence of an implicit illegal agreement.” A good practice is for employers to draft confidential information policies for recruiters specifying categories of information (such as salaries, benefits, and signing bonuses) which are competitively sensitive and not to be shared outside the firm.