Silicon Valley Hiring Practices Lawsuit Granted Class Action Status

A lawsuit against major Silicon Valley companies that alleges broad conspiracy has been granted class action status by a U.S. judge. Five software engineers originally sued Adobe Systems, Inc, Intel Corp, Apple Inc and Google Inc as well as others in 2011, claiming the Silicon Valley companies had a conspiracy to suppress employee compensation to low levels by not poaching each other’s workers.

The class action status will give the plaintiffs more leverage in the case for larger financial settlements rather than suing individually.

The Silicon Valley companies are accused of violating the Sherman Act and Clayton Act antitrust laws, allegedly conspiring to eliminate labor competition. The lawsuit claims that by creating an environment where employees could not work at other companies for more pay or better benefits, workers were deprived of job mobility and hundreds of millions of dollars in compensation.

The judge that made the class action ruling in San Jose, California (which was made available on October 24) also allowed the class of technical employees, including software and hardware engineers, component designers and application developers to join in on the lawsuit. The plaintiffs originally sought for an “All Employee” class to be certified by the judge, but were refused based on not enough evidence provided to show commonality among the proposed class members.

Conspiring with other companies to prevent employee growth or mobility is illegal and businesses that practice these strategies deserve to be held liable for stunted job growth among employees. Our California labor law attorneys handle class action lawsuits and can help you get the compensation you deserve if your employer is providing an unfair workplace.

Contact our Los Angeles employment attorneys today at (310) 273-3180 to discuss your case.

Kesluk, Silverstein & JacobLos Angeles employment attorneys

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