No-poach agreements

“On April 3, 2018, the United States filed a civil antitrust Complaint alleging that Defendants Knorr-Bremse AG (“Knorr”) and Westinghouse Air Brake Technologies Corporation (“Wabtec”) entered into unlawful agreements not to poach each other’s employees in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1. Specifically, the Complaint alleges that Knorr and Wabtec entered into a series of agreements not to solicit, recruit, hire without prior approval, or otherwise compete for employees (collectively, “No-Poach Agreements”). 

In addition, the Complaint alleges that Knorr and Wabtec separately entered into No-Poach Agreements with Faiveley Transport North America, a U.S. subsidiary of Faiveley Transport S.A. (“Faiveley”), before Faiveley was acquired by Wabtec in November 2016.

The No-Poach Agreements were not reasonably necessary to any separate, legitimate business transaction or collaboration between the companies. According to the Complaint, the Defendants’ No-Poach Agreements unlawfully allocated employees between the companies and are per se unlawful restraints of trade that violate Section 1 of the Sherman Act, 15 U.S.C. § 1.”

Complaint: 349979

Competitive impact statement: 349977

Related content: Prácticas de contratación de personal, restrictivas de la competencia

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