Thursday, May 05, 2011

Google, Apple And Others Sued For Wage-Fixing

Wage-Fixing Alleged At Hi-Tech Companies

Siddharth Hariharan, a former software engineer at Lucasfilm and founder and CEO of InEarth, today filed a class action lawsuit charging that several of the nation's leading high-tech companies violated antitrust laws by conspiring to fix the pay of their employees and entering into "No Solicitation" agreements with each other.

The complaint seeks restitution for lost compensation and treble damages for the anti-competitive employment practices of Adobe Systems Inc., Apple Inc., Google Inc., Intel Corporation, Intuit Inc., Lucasfilm Ltd., and Pixar.

The complaint alleges the conspiracy among defendants consisted of agreements not to actively recruit each other's employees; agreements to provide notification when making an offer to another's employee (without the knowledge or consent of that employee); and agreements to cap pay packages offered to prospective employees at the initial offer.

Starting in 2005 with Lucasfilm and Pixar, and continuing until at least 2009 with all defendants, the companies entered into "No Solicitation" agreements with knowledge of the overall conspiracy and with the intent to reduce employee compensation. As additional companies joined the conspiracy, competition among participating companies for skilled labor decreased, said the complaint.

The complaint for damages follows an investigation last year by the United States Department of Justice into similar misconduct by defendants. After that investigation was made public, defendants agreed to end the anticompetitive agreements. However, no compensation was provided to employees of defendants.

The class action was filed to seek lost pay for the employees who were targeted by defendants' conspiracy, said attorneys for the complainant.

1 comment:

  1. Anonymous7:31 PM

    Absolutely pathetic.

    Hope this guy wins!