Antitrust suit puts Apple at heart of pay-limiting scheme

04.05.2011
A California class action lawsuit puts Apple at the center of a conspiracy involving Google, Adobe, Intel and others to keep employee wages down.

The suit echoes an in 2009 that charged the companies with agreeing not to cold call each other's employees in order to extend job offers. The companies settled with the DOJ, agreeing not to ban cold calling and not to enter into any kind of agreement that prevents competition for employees.

But that settlement didn't help employees who were potentially paid less because of the deals, , filed in the Superior Court of California in the County of Alameda on Wednesday, argued.

"Without this class action, Plaintiff and members of the class will not receive compensation for their injuries and Defendants will continue to retain the benefits of their unlawful collusion," according to the suit.

The suit charges the companies with violating antitrust and unfair competition laws for forming agreements aimed at keeping employee compensation artificially low and eliminating competition among the defendants for skilled labor. The suit was brought by Siddharth Hariharan, a former software engineer at Lucasfilm.

The companies agreed to provide notification to the employer when making an offer to an employee and, when offering a position to another company's employee, neither company would counteroffer above the initial offer, according to the suit.