In rejecting a proposed settlement in Silicon Valley’s closely watched “no hire” case, District Judge Lucy Koh said on Friday there’s strong evidence that Steve Jobs was a central figure, if not “the” central figure, in the alleged conspiracy to suppress workers’ wages.
The case involves allegations that seven of Silicon Valley’s biggest companies, including Apple, Google, Intel and Adobe Systems, had secret agreements in place not to poach each others’ workers. That would be a violation of the Sherman Antitrust act and would limit the chance for workers to increase their salaries by switching jobs.
Last year, three of the accused companies—Intuit, Lucasfilm and Pixar—settled the case by paying damages to the affected class of workers. The other four companies fought on, until in April they reached a separate settlement that required Judge Koh’s approval.
She refused to approve it on Friday, saying the amount was too low. The proposed settlement is for US$324.5 million, but once the attorneys collect their fees of about $81 million, the workers each would get only $3,750.
What troubled the judge, in large part, was that it’s a smaller settlement than the one reached with the other companies last year—even though the evidence presented since then means the workers are in a much stronger position. If the two sides can’t reach a settlement that Koh will approve, the case could go to a trial that might reveal even more about hiring practices in the Valley.
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