EBay Owes $3.75 Million for Secret No-Poach Deal

     SAN JOSE, Calif. (CN) – A federal judge gave final approval to a $3.75 million settlement for eBay workers affected by an alleged handshake agreement between eBay and Intuit not to recruit each other’s employees.
     California alleged that the agreement lasted from 2006 to at least 2009, during which period eBay repeatedly declined opportunities to hire or interview Intuit employees and eBay employees were instructed not to pursue potential hires that came from Intuit.
     U.S. District Judge Edward Davila’s order approving the settlement said the agreement “eliminated competition for employees, and it harmed employees by reducing the salaries, benefits, and employment opportunities they might otherwise have earned if competition had not been eliminated.”
     About $2.4 million of the settlement fund will be restitution for the affected employees, Davila ordered.
     Of the remaining funds, $250,000 will be paid to the state of California as civil penalties; $150,000 will go to costs of claimant notice and fund administration; $300,000 will be paid for the harm to California’s economy, “including deadweight loss”; and $675,000 pay attorneys.
     Any remaining funds will go to cy pres organizations “for purposes relating to employment in the technology industry in California,” Davila said.
     The deal also requires eBay to refrain from making no-poach deals with rival companies in the future.

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