High-fashion workers' bid to revive antitrust lawsuit gets US Justice Dept, state AG support

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High-fashion workers' bid to revive antitrust lawsuit gets US Justice Dept, state AG support
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The U.S. Justice Department and 21 state attorneys general are backing the reinstatement of a lawsuit accusing Saks Fifth Avenue and luxury designers of conspiring to limit retail employee mobility. The lawsuit alleges that designer brands such as Louis Vuitton, Gucci, and Prada agreed not to hire Saks employees for six months, while also suppressing wages. The support from the Justice Department and state AGs highlights the anti-worker and anticompetitive nature of such 'no-hire agreements'.

Designer brands, including Louis Vuitton USA, Gucci America and Prada USA agreed not to hire Saks employees for at least six months, according to the proposed class action. The plaintiffs also alleged Saks suppressed wages.

The states and the DOJ were not parties to the private lawsuit, but Biden administration antitrust enforcers have targeted no-poach and non-solicitation pacts as anticompetitive. An attorney for the plaintiffs, Joseph Saveri, welcomed the views of the Justice Department and states to help "shape and develop" the legal issues at the heart of the case.

Chief U.S. District Judge Margo Brodie in Brooklyn, New York, dismissed the workers' case after finding the claims from three former employees at Saks fell outside the four-year window to file an antitrust lawsuit.

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