Think tank criticizes Justice high-tech hiring settlement

"We don’t know whether this is a good or bad settlement, but neither does the Division, because it didn’t look at the economic consequences of the do-not-cold-call agreements or of the settlement on wages or on competition," Lenard said.


Lenard said the agreements could be anti-competitive, but said they could also promote competition because they encourage collaboration among companies and serve as a counter-balance to California's weak non-compete laws. He also pointed out the agreements didn't bar firms from hiring rivals' employees, only from cold calling them directly. He warned that continuing to prosecute such cases in a similar manner may interfere with hiring practices in the tech industry and hamper innovation.