Analysis Group Consultants Author ABA Newsletter Articles on the Implications of No-Hire, Non-Compete, and No-Poaching Agreements for Franchises
April 9, 2018
Analysis Group consultants authored two articles in the February 2018 issue of Distribution: The Newsletter of the Distribution & Franchising Committee of the Section of Antitrust Law of the American Bar Association. The articles focus on provisions often included in franchise agreements that are the subject of increasing scrutiny by regulators and plaintiffs: non-compete agreements that preclude employees from taking jobs at competing companies after leaving their current employers, and no-poaching agreements between employers that restrict their ability to recruit or hire each other's employees.
In “Recent Developments in Litigation and Regulation Related to No-Hire and Employee Non-Compete Agreements: Implications for Franchise Systems,” Analysis Group Vice Presidents Aaron Fix and Jee-Yeon Lehmann, as well as Manager Michael Schreck, discuss recent legal and regulatory challenges to no-hire agreements between employers and non-compete agreements, including relevant legal precedents, important economic issues that they raise, and their significance for franchise systems.
In “The Department of Justice and Federal Trade Commission Guidance for Human Resources Professionals and Recent Comments by Enforcement Officials Related to No-Poaching Agreements,” Analysis Group Vice President Shannon N. Seitz, Manager Federico Mantovanelli, and Associate Filippo Balestrieri examine potential antitrust implications of provisions related to no-poaching agreements. The authors provide an overview of the relevant antitrust laws and how they apply to the hiring and retention of workers by employers, review recent Department of Justice and Federal Trade Commission guidance on how employers can avoid violating antitrust laws, and provide insight into what employers may expect with respect to enforcement of no-poaching agreements under the Trump administration.