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LG and Samsung Sued Over Hiring Practices

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Sep 13, 2016, 7:24 AM by Eric M. Zeman

A former LG employee is suing both LG and Samsung, alleging the companies have a no-recruit agreement between them in the U.S., which can impact employees' potential earnings. Accuser A. Frost, once an LG employee, claims a recruiter from Samsung reached out to him for a job, but later reneged saying, "I’m not supposed to poach LG for Samsung!" The recruiter went on to explain the companies have an agreement not to hire away one another's workers. Mr. Frost is seeking class-action status for the lawsuit. Silicon Valley companies have been taken to task in recent years for such agreements. For example, in 2015 Apple, Intel, Adobe, and Google agreed to pay some 64,000 workers $415 million to settle similar class-action lawsuits. Those companies never admitted wrongdoing. Neither LG nor Samsung commented on this latest legal action.

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