AGs Fight Against Saks No-Poach Agreements with Luxury Brands

  • A coalition of 21 AGs filed an amicus brief in the U.S. Court of Appeals for the Second Circuit in support of former Saks retail store employees who allege that they were harmed by “no-poach” agreements between Saks and luxury goods brands including Prada, Louis Vuitton, and Brunello Cucinelli.
  • In their amicus brief, the AGs argue that agreements among direct labor market competitors not to hire each other’s employees are anticompetitive and have negative effects including depressed wages, smaller employee benefit packages, and limited worker mobility. They argue that such no-hire or no-poach agreements are horizontal restraints that are per se unlawful under federal antitrust law.
  • The AGs ask the Second Circuit to reverse a district court judgment on the pleadings finding against the Saks employees.
  • We previously covered an agreement made between a group of AGs and several fast food franchisors including Burger King Corporation, Popeyes Louisiana Kitchen, Inc., and Tim Hortons USA Inc. to eliminate the use of “no-poach” provisions in franchise agreements.