Comments
No-Poaching Settlement Could Spur Tech Talent War
Oldest First  |  Newest First  |  Threaded View
David F. Carr
100%
0%
David F. Carr,
User Rank: Author
4/22/2014 | 9:36:55 AM
He really wrote that?
Note to Eric Schmidt: when trying to avoid a paper trail, best not to write an email stating "I don't want to create a paper trail over which we can be sued later" before taking the conversation offline.
Laurianne
100%
0%
Laurianne,
User Rank: Author
4/22/2014 | 10:19:11 AM
Poaching
We may not learn the full details of this no-poaching arrangement if the cases settles, as is now expected, which is too bad. Recruiter 'arrangements,' on and off the books, to prevent poaching are ususally bad news for employees and I think they happen far more often than we realize, not just in tech or IT.
Drew Conry-Murray
100%
0%
Drew Conry-Murray,
User Rank: Ninja
4/22/2014 | 10:54:34 AM
Re: Poaching
I was under the impression that high-demand employees moved pretty freely among the big Silicon Valley companies. If there were non-poaching agreements in place, that seems pretty sleazy, and puts some dents in the self-perpetuated notion that these organizations are pure-minded meritocracies.
RobPreston
50%
50%
RobPreston,
User Rank: Author
4/22/2014 | 1:47:00 PM
Re: Poaching
The allegations remind of the collusion in Major League Baseball in the mid-'80s, whereby owners agreed privately to rein in their spending on free agents, sign them to shorter contraxts -- or not sign them at all. The owners didn't get away with it (they ended up settling). But some big name players still lost out on some serious money.
liverdonor
50%
50%
liverdonor,
User Rank: Apprentice
4/22/2014 | 2:17:02 PM
Re: Poaching
@Laurianne - truth.

Probably the most egregious example is the legal profession - the non-compete that most legal associates sign when joining a firm isn't even the half of it - if you leave a firm for reasons other than spousal relocation or health or going back to school or somesuch, you might as well move to another city (or country if your firm has enough reach), because you're effectively black-listed.
asksqn
50%
50%
asksqn,
User Rank: Ninja
4/22/2014 | 3:26:03 PM
It's good to be a corporate lawyer
Funny thing about class action lawsuits is that the only winners are the legal counsel.  Those consumers/employees on whose behalf the suit was filed, not so much.  Adding further insult to injury, the piddly $9M settlement isn't even a slap on the wrist compared to the combined profit margins of the defendants.  And lastly, this case will no doubt settle and therefore, not even serve as a legal precedent for future action.  So in the final analysis, where consumers/employees are concerned, this case is nothing more than an exercise in futility and job security for litigators.
ChrisMurphy
50%
50%
ChrisMurphy,
User Rank: Author
4/22/2014 | 4:33:07 PM
Re: It's good to be a corporate lawyer
Exposing and ending the practice would be an upside, no?
ThorvingtonF079
50%
50%
ThorvingtonF079,
User Rank: Strategist
4/22/2014 | 4:56:06 PM
Re: It's good to be a corporate lawyer
I believe your unit of measure is wrong--requested damages were $3 BILLION (with a B) dollars, potentially trebled to $9 BILLION if it can be proven these companies willfully violated antitrust laws. ...And I'm not sure how they could argue it was an "accident" and that "management didn't know" since many of the emails released so far have been from the upper-echelons of the involved companies, a few embarassing ones from Steve Jobs and Larry Page, for example.
Alison_Diana
50%
50%
Alison_Diana,
User Rank: Author
4/22/2014 | 5:45:58 PM
Re: It's good to be a corporate lawyer
Yes, @asksqn, I've always thought it's much better for a litigant to avoid getting forced into a class action lawsuit. Sure, the primary attorney loves the idea; s/he gets the 40%, 50% or whatever of the total settlement. But all plaintiffs share in the (vastly diminishing) pot of money on the other side of that share, a share that attorneys are anxious to bolster in order to make their class action suit more imposing (and profitable). 
Thomas Claburn
50%
50%
Thomas Claburn,
User Rank: Author
4/22/2014 | 7:51:20 PM
Re: Poaching
>I was under the impression that high-demand employees moved pretty freely among the big Silicon Valley companies.

 

Actually, employees in California have some of the strongest protection against labor mobility limits, such as non-compete clauses. Massachusetts and Texas are moving in that direction. That's one of the reasons the companies involved are facing massive damage claims.


The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest September 18, 2014
Enterprise social network success starts and ends with integration. Here's how to finally make collaboration click.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.