Mr. Loya discusses the first Department of Justice (DOJ) action resulting from its promise to crack down on non-solicitation agreements. The DOJ’s Antitrust Division has entered into a settlement with two of the world’s largest railroad equipment manufacturers, part of the broader antitrust investigations announced by the agency in October 2016. According to the DOJ, the two companies had entered into a no-poaching agreement that “restrained competition for employees.” The civil complaint is the first case brought by the DOJ since its 2016 antitrust guidance statement. In a press release, the DOJ noted that this particular case was a civil one because the agreement ended before the 2016 guidance, but the agency said that it would criminally prosecute any violations that post-dated the guidance.
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