Lieff Cabraser Announces Settlement of Knorr and Wabtec Employee No-Poach Antitrust Lawsuit

Freight train with cargo containers

Proposed settlements with world’s dominant railway equipment suppliers will provide $48.95 million for employees who alleged their compensation was adversely impacted by an agreement between Knorr and Wabtec not to poach each other’s employees

Lieff Cabraser Heimann & Bernstein, LLP and Fine, Kaplan and Black, R.P.C. announce a total of $48.95 million in settlements to resolve antitrust claims of a class of approximately 8,396 employees of Westinghouse Air Brake Technologies Corporation and certain subsidiaries (“Wabtec”) and Knorr-Bremse AG and certain subsidiaries (“Knorr”). Knorr has agreed to pay $12 million, and Wabtec has agreed to pay $36.95 million. [Read more…]

American Antitrust Institute Pens Letter of Opposition to Department of Justice Over DOJ’s “Misguided” Approach Toward Fast Food Franchise No-Poach Employee Restriction Agreements

Fast food worker no-poach blog

On Thursday May 2, 2019 the American Antitrust Institute submitted a thirteen-page letter to the Antitrust Division of the Department of Justice expressing concerns that the DOJ’s recent Statement of Interest relating to fast food franchise employee “no-poach” cases “threatens to lead district courts astray and discourage antitrust challenges to patently anticompetitive labor-market restraints that exploit the most vulnerable workers in the franchise sector.” The Antitrust Institute, along with many other employee rights organizations and advocates, contends that the practice of restricting employees from moving from one store to another within the same franchise violates antitrust laws and causes workers’ wages to be lower than they would otherwise be if not limited by the resulting reductions in career mobility and advancement. [Read more…]