After years of warnings, the U.S. Department of Justice (DOJ) has officially made good on its promise: wage-fixing and no-poach agreements are no longer just risky—they’re criminal.
In a landmark moment for labor market enforcement, the DOJ secured its first guilty plea in a wage-fixing case, putting employers everywhere on notice. If you’re in HR, compliance, or leadership, this is a big deal—and a clear signal that it’s time to reexamine your hiring and pay practices.
What Happened?
The case centers on VDA OC LLC, a healthcare staffing company that (according to prosecutors) entered into an agreement with a competitor not to recruit each other’s nurses—and to hold down their wages. The arrangement, active for less than a year between 2016 and 2017, impacted nurses serving the Clark County School District in Nevada.
In October 2022, VDA pled guilty to the charges and was sentenced to:
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$62,000 in criminal fines
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$72,000 in restitution to affected nurses
Notably, this marked the DOJ’s first successful criminal prosecution of a labor market antitrust case, following earlier courtroom losses in similar cases.
Why This Matters for Employers
This case is more than just a headline—it’s a shift in enforcement. Here’s why it should be on every HR leader’s radar:
1. No-Poach and Wage-Fixing Agreements Are Criminal Now
The DOJ and FTC made it clear back in 2016: agreements between employers not to hire or to fix wages are illegal. But this case proves they’re now willing to back that up with criminal charges—even when the conspiracy is short-lived or involves relatively few employees.
2. Restitution Sets a New Precedent
In an unusual move, the DOJ secured restitution for the affected nurses. This could signal a trend: companies may face not only fines but also victim compensation, raising the financial and reputational stakes significantly.
3. Even Informal Agreements Can Be Risky
The VDA case allegedly involved just a single call and an email—a stark reminder that even casual conversations can cross legal lines. HR teams must be vigilant about what’s said and agreed upon during interactions with competitors.
4. Employees Can Be Held Personally Liable
The DOJ is not just going after companies—they’re targeting individuals. In fact, VDA’s former regional manager still faces charges. This highlights the need for HR, recruiters, and executives to fully understand the antitrust implications of their decisions.
What HR Teams Should Do Now
To avoid becoming the next cautionary tale, HR leaders should:
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Train teams (especially those involved in hiring and compensation) on antitrust risks.
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Audit all agreements with vendors, partners, or competitors that touch on employment terms.
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Avoid any discussions with competitors about wages, benefits, or hiring strategies.
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Update compliance policies to include wage-fixing and no-poach guidelines.
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Be cautious during mergers or acquisitions—labor market issues discovered during due diligence can lead to criminal exposure.
Bottom Line
The DOJ’s success in this wage-fixing case is a turning point. It’s a reminder that employment decisions don’t just live in the HR department—they’re now on the radar of federal prosecutors.
As HR professionals, we play a pivotal role in ensuring fair, competitive workplaces. That means staying informed, staying compliant, and above all, putting workers first—because a “fair day’s wage for a fair day’s work” isn’t just a saying anymore. It’s becoming law.
Be Audit-Secure™!
