Non-compete agreements are always a favorite topic of mine. This week, I came across a similar type of agreement used in the employment context (although different in many respects), "No Poaching" agreements. As Janette Levey Frisch writes, while some employers may utilize these "No Poaching" agreements, the recent crackdown by the Department of Justice in regard to the use of these agreements should serve as a warning to employers: be careful, be very careful.
As always, below are a couple articles that caught my eye this week.
Salary History Bans: An Overview
HRDive recently published an overview of the cities and states that have enacted bans on employers asking applicants about their salary history. This particular article provides information on each ban, such as when the ban went into effect as well as some of the specifics of each particular ban (including links to the text of each law/ordinance as well as any amendments.) Next week, I will highlight an effort in Colorado to implement such a ban. For the time being, this particular should tide readers over until then.
Study: Post Millennials Slower to Enter Workforce
The Pew Research Center released a study late last year which noted that in a tight labor market, numbers show that the post millennial generation is slower to enter the workforce. According to the report, roughly one in five (19%) 15 to 17 year olds report having worked at all last year, compared with approximately 30% the year before. In comparison, about 48% of baby boomers in the same age group worked in 1968. Among 18 to 21 year olds, 58% were employed last year compared to 72% that reported being employed in 2001. In comparison, about 80% of baby boomers in the same age group worked in 1968. What do these numbers show? A) many younger workers are prioritizing school rather than work; and B) many "older" workers are likely holding onto jobs that would traditionally be taken by younger workers. In comparison with prior years (and generations), the decrease in the younger workforce could be concerning for some employers. It would be interesting to see whether these figures continue to decline over the next few years or whether they taper off or even revert in the opposite direction.
Seventh Circuit: ADEA Does Not Provide Disparate Impact Claim to Job Applicants
Late last month, the Seventh Circuit Court of Appeals issued a decision in Kleber v. CareFusion Corporation in which the Court held that while the Age Discrimination in Employment Act ("ADEA") protects employees from disparate impact age discrimination, the statute does not extend the same protections to job applicants. The case came about after a 58 year old attorney applied for an in house counsel position with CareFusion. The job post stated that CareFusion was seeking "a business person's lawyer" and listed the qualification "3 to 7 years (no more than 7 years) of relevant legal experience." After not getting an interview, the attorney filed his ADEA claim on the grounds that the 7 year experience cap unlawfully intended to weed out older applicants. The Seventh Circuit's opinion here is rather lengthy, but worth a read for those interested in one of the more prominent ADEA claims as of late.
Employers: Using "No Poaching" Agreements? Tread Carefully...
Janette Levey Frisch wrote an article yesterday in regard to "No Poaching" agreements which some employers often utilize. These "No Poaching" agreements are an agreement between competitors not to take each other's employees. While these agreements make seem beneficial to some employers, Janette points out that they are unlawful as they violate anti-trust laws. Utilizing a recent case, the article notes the Department of Justice is starting to focus on employers that utilize these agreements and cracking down on their usage. The takeaways from that case are worth reviewing as are the three takeaways at the end of the article.
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