In 2011, high-tech workers in Silicon Valley filed a class action antitrust suit against employers Apple Inc., Google Inc., Intel Corp., and Adobe Systems Inc. The complaint alleged that these high-tech companies agreed to not poach each other's workers, thus limiting employee's job mobility and artificially limiting their salaries. Noncompete contracts are unenforceable in California, so these human resources collusion strategy was sued as an alternative to prevent high-tech workers from departing to compete at other large companies. The trial court denies the companies motion to dismiss the case, shortly before trial, a settlement was reached between the parties for $415 million.

Case questions

1.Was it ethical for these high-tech companies to agree not to hire each other's employees? Explain

2.Is it ethical to use legal means such as noncompete contracts to prevent workers from leaving to join another business? How is this case different?