A no-poach deal between employers not to hire each other's workers is usually worth a few hundred to a few thousand dollars per worker. Large hourly classes pay less per person than small skilled groups.
The DOJ and FTC treat naked no-poach and wage-fixing deals as per se violations of the Sherman Act with possible criminal prosecution, under updated DOJ and FTC guidance. Employers use them to limit job moves and hold down pay. Settlements repay part of those lost wages.
Official resources:
- Read the official guidance from Justice — Use this primary source to verify the official guidance.
- Read the official notice from Mcdonaldhopkins — Use this primary source to verify the official announcement.
Table of Contents
- Why the same violation pays differently
- What workers actually received
- Why big low-wage classes pay so little
- How your payment is figured
- How to protect your share
Why the same violation pays differently
Settlement value starts with lost pay. Melmed Law Group notes federal antitrust law allows an injured worker to seek three times actual lost wages, plus fees and costs. Settlement funds rarely reach that full measure.
Class size matters more than headlines. A $5 million fund spread over hundreds of thousands of workers pays far less per check than a similar fund for 1,000 workers. Pay level, class period, proof of harm, and fees also shape the result.
What workers actually received
Tech workers received the largest payouts. TechCrunch reported a federal judge approved a $415 million settlement for more than 64,000 workers after Apple, Google, Intel and Adobe allegedly agreed not to cold-call each other's employees, in the TechCrunch report.
Skilled rail workers also received thousands before deductions. According to Lieff Cabraser, Knorr and Wabtec paid $48.95 million to about 8,396 workers over claims they agreed not to hire each other's skilled staff to suppress pay, in the final approval announcement. Bloomberg Law reports Jiffy Lube won final approval of a $2 million all-cash deal for about 1,255 Philadelphia-area hourly workers barred from moving among franchise shops.
Why big low-wage classes pay so little
Franchise cases show the low end. McDonald Hopkins reports Papa John's agreed to a $5 million fund for about 517,000 restaurant workers employed from Dec. 2014 to Dec.
2021 over franchise no-poach clauses, while plaintiffs' expert estimated $195 million in damages. Reuters calculated that fund averages about $165 per claimant if 20% file claims, before fees and costs, in the Reuters report. Small individual checks do not mean the case was weak. They reflect a small fund divided by a very large class.
How your payment is figured
The railway settlement site explains practical value turns on proof of employment during the class period and claim rate. Eligible workers must file a timely claim. Payouts fall as more people claim or after court-approved deductions.
Administrators usually divide the net fund by valid claims. Longer tenure or higher wages can raise a share if the plan uses points. Flat payments are common in hourly franchise classes.
How to protect your share
Late or missing claims get nothing from that fund. Keep a copy of your filing confirmation until payment issues.
- Confirm you worked for a covered employer during the listed dates.
- Save pay stubs, W-2s, or job records showing dates and location.
- Watch for mailed or emailed class notice with the claim deadline.
- File the claim form on time, even if the estimated payment looks small.