Outpatient Surgical Companies Alleged No-Poach Collusion: What You Need to Know  

In January 2021, the Department of Justice of the United States of America (DOJ) filed an indictment claiming the top executives of Surgical Care Affiliates (SCA) and two other outpatient surgical companies based out of Dallas, Texas and Denver, Colorado verbally agreed  to prevent recruiters and human resources employees from interviewing employees at the Director-level or higher from other companies in the agreement. This is a direct violation of antitrust law and a gross infringement on the rights of employees to seek out better, more lucrative employment. 

McCune Law Group (MLG) is no longer bringing a class action lawsuit against three competing companies alleged to have colluded together to avoid poaching each other’s executive level employees. The investigation includes Surgical Care Affiliates(SCA Health) and two other companies that may or may not include AmSurg, and United Surgical Partners International (USPI).  

What is No-Poach Collusion?  

No-poach collusion refers to an agreement amongst competitor companies not to compete for each other’s employees. In this instance, the DOJ indictment found evidence that human resources employees at the involved companies allegedly removed candidates from interview lists because of a verbal no-poach agreement.  

What are the Consequences of No-Poach Collusion?  

No-poach collusion agreements significantly limit employees’ opportunity to advance or move within their field. Employees may lose out on their right to seek higher pay or better working conditions due to terms set without their consent.  

An employee at a company colluding with others via no-poach agreements may:  

• Struggle to find employment commensurate with experience  

• Fear retaliation and hesitate to seek new employment  

• Miss out on opportunities for advancement 

Employees have a right to search for new employment for any reason with or without notice. No-poach collusion agreements may threaten this right.  

By suppressing employee mobility, no-poach agreements may artificially distort labor market competition, keeping wages low and depriving the field of optimal workers. This artificial distortion of the market can open onto anti-trust claims, for which companies may find themselves facing commercial litigation.  

Who is Affected by No-Poach Collusion Agreements?  

Employees and businesses of all types may be negatively impacted by no-poach agreements. No-poach agreements may affect:  

• Director-level employees or executives
• Management-level employees
• Exempt and non-exempt workers  

No-poach agreements may also negatively impact other businesses in the same market. These businesses who are not a part of the agreement may find themselves unable to find or hire qualified employees.  

Related Cases and Legal Areas  

If you’ve been negatively impacted by collusion or anti-trust violations of any kind, we recommend exploring the following practice areas.  

Commercial Litigation: This practice area covers a wide range of matters related to business and business transactions, including fraud, breach of contract, and shareholder disputes.  

Employment Discrimination: Handling matters related to unfair treatment in hiring, firing, and other areas of work, this practice area fights for employees’ right to a just and equitable workplace.  

Anti-Trust Litigation: Litigation in this practice area contends with anti-competitive practices and monopolies.  

Need Legal Assistance?  

If you’re dealing with a non-poach collusion agreement or related issue, our experienced commercial litigation attorneys are here to help. Get in touch with our commercial litigation team to explore your legal options.  

For general inquiries, you can reach us at (909) 345-8110 or via our online form. 

Final Note:

This page is no longer accepting new clients for alleged non-poach agreement collusion between outpatient surgery center companies. It remains active as an informational resource only.  

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Counsel Richard McCune is licensed to practice only in the state of California.  The law firm of McCune Law Group has attorneys licensed to practice law in AZ, CA, IL, MO, NJ, NY, and PA.  This information section is not intended to be a solicitation for services in states where it is forbidden for non-barred attorneys from advertising for services, and McCune Law Group does not have attorneys barred in that state. McCune Law Group is a national firm that brings lawsuits in a majority of the states. In states where one of its attorneys are not barred, it does so by filing the complaint along with local counsel barred in that state.  

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