According to CNET, the U.S. Department of Justice (DOJ) and the California Attorney General’s Office reached a settlement with eBay earlier this month, telling the company it cannot make or maintain agreements with other tech companies not to hire talent.
The settlement is reportedly for $3.75 million. The claims in the lawsuit were similar to a case involving Apple, Google and other tech companies that was recently settled for a reported $300 million.
The DOJ said that the settlement would go toward paying current or former employees at eBay or Intuit, who lost employment opportunities between the two companies. The claims reportedly go back as far as 2005.
Even though it acknowledged the settlement, eBay said it disagreed with the assessment of the situation.
“eBay continues to believe that the policy that prompted this lawsuit was acceptable and legal, and led to no anticompetitive effects in the talent market in which eBay competed,” the company said in a statement.
High-ranking management, including then-eBay CEO Meg Whitman and Intuit co-founder and executive committee chair Scott Cook, according to the lawsuits, oversaw the claims alleged. The settlement still needs approval from the US District Court for the Northern District of California in San Jose.
“eBay’s agreement with Intuit served no purpose but to limit competition between the two firms for employees, distorting the labor market and causing employees to lose opportunities for better jobs and higher pay,” said Bill Baer, assistant attorney general in charge of the Department of Justice’s Antitrust Division, in a statement.
How Do I File a Wage or Overtime Lawsuit?
This is good news not only for employees in the tech sector, but also for Californians in general. It is a shady practice to make agreements with competitors not to hire each other’s employees just to keep labor costs down.
These types of cases are a great reminder that class action lawsuits are a great way to settle wage or overtime disputes involving workers, as laws exist to ensure that employees are given fair and just compensation for their services. If you have similar claims, even if you do not work in the technology sector, we would love to hear from you. Contact our employment attorneys today.
Kesluk, Silverstein & Jacob—Los Angeles employment attorneys
Did You Know? Exempt employees are defined as salaried workers with supervisory or managerial responsibilities.