<ul><li>A recent ruling by the 2nd Circuit U.S. Court of Appeals has confirmed that 'no-hire' agreements between luxury retailer Saks & Co. and certain high-end brands are not in violation of federal antitrust laws.</li><li>The agreements, which involved brands such as Loro Piana, Louis Vuitton, Gucci, Prada, and Brunello Cucinelli, stipulated that these brands would not hire any 'luxury retail employees' currently or previously employed by Saks unless approved by both companies' managers.</li><li>A class action lawsuit was filed by sales associates claiming that these agreements suppressed wages and limited job mobility. However, the lawsuit was dismissed by a federal district court and the dismissal was upheld by the 2nd Circuit.</li><li>The court clarified that 'no-hire' agreements can be considered vertical arrangements and are only illegal if they have an actual adverse effect on competition in the relevant market.</li></ul>

‘Vertical’ no-hire agreements can be legal, 2nd Circuit reminds in Saks lawsuit

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