Technology companies accused of creating ‘do not call’ lists

Though there is more to work than pay, it is undeniable that pay and the possibility of getting a raise plays a role in people’s employment decisions. Employers recognize this and will often offer their top employees more money if it looks like they might be considering leaving the company. If a Manhattan company wants to keep an employee, it will make sure that the employee’s pay rate is, at the very least, comparable to other similar businesses.

In a strange twist, numerous technology giants colluded to make agreements to keep their employees without having to offer them more money. According to a class-action lawsuit filed by workers, their employee rights were violated by the companies’ agreements not to call each others’ employees and compete for them. They also say that it negatively affected their wages.

Though the lawsuit against LucasFilm, Pixar, Intel, Google, Intuit, Apple and Adobe was set to start at the end of May, the 64,000 employees were able to reach a settlement with their employers. The reported settlement cost the tech giants $324 million.

Whether this practice actually deflated the employees’ salaries is not entirely clear, but the class will no longer have to go to court to prove they were negatively affected. The class also accused the tech companies of violating the Sherman and Clayton Antitrust Acts.

All employees should have a shot at a fair salary and, if they don’t think they are getting one, they should not be restricted in where they can look for future work.

Source: Courthouse News Service, “Tech-Hiring Ring Will Cost $300-Plus Million,” Jonny Bonner, April 29, 2014

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