Photo of Gerald Maatman, Jr.

Gerald is a partner in the Wage & Hour Litigation Practice Group in Seyfarth Shaw’s Chicago office. Mr. Maatman has a primary emphasis in his practice on defending employers sued in employment-related class actions and EEOC pattern and practice lawsuits brought in federal and state courts throughout the United States. Mr. Maatman also pioneered the process of conducting employment practices audits to assist employers in structuring effective and practical personnel policies and protocols. These audits are designed to minimize the incidence of employment-related class action litigation and to maximize management discretion and workplace productivity. Mr. Maatman’s work in this area has been profiled in the Wall Street Journal and Time Magazine.

This post originally appeared on the Workplace Class Action blog.

Seyfarth Synopsis: There are currently pending at least four class actions claiming that provisions contained in franchise agreements prohibiting the hiring of employees of other intrabrand franchisees without the consent of their employer violate the antitrust laws.  That being said, in 1993 the Ninth Circuit affirmed summary judgment in favor of a franchisor in a similar “no-hire” case.  It reasoned that due to the control the franchisor exercised over its franchisees, the franchisor and its franchisees were incapable of conspiring in violation of Section 1 of the Sherman Act. While the so-called “single enterprise” defense is potentially available, franchisors should be cognizant that in developing that defense, they may create evidence or admissions that would support a subsequent claim that the franchisors are joint employers of their franchisees’ employees.  In light of the availability of other defenses, franchisor employers should assess whether the joint employer risk is worth accepting in order to pursue the single enterprise defense. 
Continue Reading Franchise “No-Hire” Agreement Class Actions And The Single Enterprise Defense

This post originally appeared on the Workplace Class Action blog

Seyfarth Synopsis: True to his word, the Assistant Attorney General for the Antitrust Division of the U.S. Department of Justice has announced the first of a number of anticipated no-poach enforcement actions. While this was a civil proceeding, the Department of Justice has said that in some cases it may treat the conduct as criminal. Many executives and HR professionals are unaware that the antitrust laws apply to the employment marketplace. Thus, if they have not done so already, employers should consider the implementation of compliance programs to make sure that appropriate employees are aware of these developments and risks.
Continue Reading DOJ Announces First of a Number of Anticipated No-Poach Enforcement Actions – What Should Employers Do Now?