U.S. investigating tech hiring practices

[w¡n9Nµ7 §£@¥€r 123]

By THOMAS CATAN And BRENT KENDALL

WASHINGTON—The Justice Department is stepping up its investigation into hiring practices at some of America's biggest companies, including Google Inc., Intel Corp., International Business Machines Corp., Apple Inc. and IAC/InterActiveCorp., people familiar with the matter said.

The inquiry is focused on whether companies, particularly in the technology sector, have agreed not to recruit each others' employees in ways that violate antitrust law. Specifically, the probe is looking into whether the companies' hiring practices are costing skilled computer engineers and other workers opportunities to change jobs for higher pay or better benefits.

After a probe that began more than a year ago, Justice Department investigators have concluded that such agreements do raise significant competitive concerns, according to the people familiar with the matter.

But the leadership of the antitrust division hasn't yet decided whether—or how—to challenge the hiring practices, these people said. About a dozen companies are meeting with top antitrust officials at the Justice Department this week and next, some to defend their practices, others to provide information.

Antitrust experts say the Justice Department could argue that an agreement between competitors that holds down labor costs is as much a violation of antitrust laws as an agreement to fix prices.

http://online.wsj.com/article/SB10001424052702304703104575174293867620832.html?mod=WSJ_Tech_LEFTTopNews

[Nikita2Charles 32]

i thought they were going to start looking at the hiring practices or should i say the abuse of the H1, Business visas.

Few years ago, Job was opened in CA, listed as a local position, but after inquiry, found out the Job is reserved for an H1 person overseas, even though it's listed under CA.

How many times has anybody gone to those companies and ask them, can you show me who you have interview for these jobs, what talented person you couldn't find that you had to go overseas, and start to look at their hiring practices.

TOO bold, or the Lobbyist money is too strong for such an undertake?

[scandal 951]

Skilled computer scientists with some management responsibilities, for instance, often make base salaries of $180,000 to $210,000. Compensation for the most sought-after workers typically soars far above that and includes bundles of stock options and bonuses.

The Justice Department hasn't confirmed the existence of the investigation, and a spokeswoman declined to comment Friday. But several companies said they have received requests for information on the way they hire employees.

Some companies are defending their recruiting practices. "Since investigations of this nature are confidential, we will not comment on what the Department of Justice may or may not be doing," said Intel spokesman Chuck Mulloy. "However," he said, "we believe our hiring practices are lawful and don't harm competition."

I'm doubtful.

Those salaries would be at the top end of the payscale, hardly average wages. However, those numbers speak to why I doubt that there's a real issue here, particularly in a climate like the Valley. The fact that top performers can pull in such numbers means that their skills are being valued and they know they have options to go elsewhere, so they're being paid well to stay. Besides, job hopping remains a popular sport in the tech world. I don't know of very many who stay at a firm longer than 5 years or so. 7-10 is a very long tenure. When you get the itch to go, you just pick up the phone to a headhunter and start going to interviews. Just about everyone is an at-will employee, it's not like you're under long term contract. There are so many new firms sprouting up all the time that it's very difficult to imagine that effective collusion can occur between a cartel of employers anyway.

[Saddle Bronc 124]

I'm doubtful.

Those salaries would be at the top end of the payscale, hardly average wages. However, those numbers speak to why I doubt that there's a real issue here, particularly in a climate like the Valley. The fact that top performers can pull in such numbers means that their skills are being valued and they know they have options to go elsewhere, so they're being paid well to stay. Besides, job hopping remains a popular sport in the tech world. I don't know of very many who stay at a firm longer than 5 years or so. 7-10 is a very long tenure. When you get the itch to go, you just pick up the phone to a headhunter and start going to interviews. Just about everyone is an at-will employee, it's not like you're under long term contract. There are so many new firms sprouting up all the time that it's very difficult to imagine that effective collusion can occur between a cartel of employers anyway.

Could those salary numbers be CA-specific?

Anywhere else (even in rather-pricey metro-DC), you can easily hire a pair of software engineers for that amount.