Kemp Little

Silicon Valley giants tied up in wage-fixing suit

Four of the world’s largest technology companies hit the headlines recently when they settled a class action brought in the US by more than 64,000 employees for the eye-watering sum of $324m (£196m), but the settlement was later overturned in the courts.

The claim was lodged in the US on behalf of engineers, programmers, digital artists and other technical staff employed by Apple, Google, Intel and Adobe Systems.

The employees alleged that between 2005 and 2009, the firms had secretly agreed not to solicit (or even hire) one another’s staff, in order to prevent a salary war from escalating in Silicon Valley. The employees claimed that this restricted their ability to move between the companies, reducing competition and in suppressing wages…

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