Silicon Valley Hi-Tech Hiring Collusion Case Finally Nears Resolution

Last week, we discussed how class action lawsuits are effective in fighting wage claims. In many cases, wage claims involve employees who say they are paid less than a required minimum wage and/or are owed overtime.

An antitrust case which has been litigated in California federal court, has been unusual in its scope and facts. The case was scheduled to go to trial in the Spring.

The case involves several of the largest tech companies, including Google, Apple, Intel and Adobe. Employees claimed that the businesses had agreements in place not to hire workers from each other, in an attempt to keep wages low. The liability was strong based on emails between and among various Chief Executive Officers, including Steve Jobs, Paul Otellini, Eric Schmidt and others. The employees claimed these sub rosa arrangements, some described in those emails between senior executive officers, were agreements not to poach employees, resulting in stagnant wages.

Prior to the last trial date, the parties put forth an agreement to settle for $324.5 million. However, the settlement was rejected by the Judge, who said that it was too low.

Recently, the parties submitted a revised settlement with defendants offering $415 million to the employees involved in the case, which has been submitted for approval to the Court.

Working With an Attorney on a Wage Claim

Through the news, it appears as though employees are becoming active in fighting for the rightful wages under the law. This is a good sign as employees should be paid for all of the hours they work.

As the Court noted in the Silicon Valley Hi-Tech Employee case, when employers artificially set wages by having illegal anti-hiring agreements in place, it hurts employees tremendously.

Gary S. Graifman, Esq. and Randy J. Perlmutter of Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. can assist you with any employment law questions you may have.

Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. – Class Action Lawyers