The Hiring Deal That Is a Crime: No-Poach and Wage-Fixing Agreements

Published 2026 | TIKC NewsWire

Government contracting runs on a tight, interconnected labor market. Firms team on one bid and compete on the next, people move between companies, and leaders know their counterparts across the industry. In that world, two kinds of conversations can turn a friendly understanding into a federal crime: agreeing not to hire each other’s people, and agreeing on what to pay. These are no-poach and wage-fixing agreements, and antitrust enforcers now treat them as criminal violations, not gentlemen’s arrangements.

What the law now says

For years, agreements among employers about hiring and pay were treated mainly as civil matters. That changed. The Department of Justice announced that it would prosecute naked no-poach and wage-fixing agreements criminally under the antitrust laws, treating them like other hardcore restraints such as bid rigging and price fixing. A wage-fixing agreement is an agreement among employers to fix or suppress the compensation of workers. A no-poach agreement is an agreement not to solicit or hire each other’s employees. When these agreements are naked, meaning not reasonably necessary to a legitimate collaboration, they are treated as per se illegal.

Why contractors are especially exposed

The contracting environment is almost designed to create temptation. On a teaming arrangement, partners may be tempted to agree not to hire each other’s staff. On a recompete, an incumbent and a challenger might be tempted to agree not to raid each other. Industry groups and informal peer networks can drift into conversations about pay. None of that is illegal on its face, but the moment it becomes an agreement among competitors to restrict hiring or hold down wages, outside a legitimate and narrowly tailored collaboration, it can become a criminal antitrust matter.

The narrow exception, and its limits

There is a legitimate lane. A restraint that is reasonably necessary to a genuine collaboration, such as a narrowly tailored non-solicitation tied to a specific teaming agreement or a merger discussion, may be lawful as an ancillary provision. But the exception is narrow and easy to overrun. A non-solicit that is broader than the collaboration, lasts longer than it, or really functions as a market-wide agreement not to compete for workers loses that protection. If you use non-solicitation terms, they must be genuinely tied to, and no broader than, the legitimate venture they support.

The stakes, and the discipline

Criminal antitrust exposure is among the most serious a company and its executives can face: potential criminal fines, imprisonment for individuals, civil suits from affected workers, and, for a contractor, suspension and debarment risk on top. The discipline is simple to state. Make hiring and pay decisions independently. Do not agree with other employers about wages or about not recruiting each other’s people. Keep any non-solicitation strictly tied to a real deal. And train the people most likely to have these conversations: executives, HR, and program managers on teamed work.

What to do now

• Set wages independently. Never agree with another employer on compensation or benefits.
• Do not agree not to hire. Steer clear of any understanding with competitors not to recruit or hire each other’s staff.
• Tie non-solicits to real deals. Keep any non-solicitation narrow and tied to a specific, legitimate collaboration.
• Watch teaming and peer settings. Teaming talks, recompetes, and industry groups are where these agreements form.
• Train the right people. Executives, HR, and program leads need to know this is criminal antitrust territory.

Your people should be free to compete for, and your company free to win, the best talent on the merits. Make every hiring and pay decision on your own, and a handshake never becomes a case. Brick by brick.

FAQ

What is a no-poach agreement?

An agreement between employers not to solicit or hire each other’s employees. When naked, meaning not tied to a legitimate collaboration, it can be prosecuted as criminal antitrust.

What is wage-fixing?

An agreement among employers to fix or suppress worker compensation. Like no-poach agreements, naked wage-fixing is treated as a per se criminal antitrust violation.

Is any non-solicitation agreement allowed?

A non-solicitation that is reasonably necessary to a genuine collaboration, such as a specific teaming agreement, and no broader than that venture, may be lawful as an ancillary restraint. Broad or standalone ones are not.

What are the penalties?

Criminal fines, imprisonment for individuals, civil suits from affected workers, and suspension or debarment exposure for contractors.

Sources

U.S. Department of Justice, Antitrust Division. (2026). Criminal enforcement of no-poach and wage-fixing agreements.

U.S. Department of Justice and Federal Trade Commission. (2026). Antitrust guidance for human resource professionals.

This article is general information, not legal advice.