Aerospace Companies Settle with Workers Over Alleged Illegal No-Poach Agreement

A group of aerospace companies has reached a settlement with workers who claimed that the companies were engaged in an illegal no-poach agreement. In a significant development, Cyient Inc. has agreed to pay $7.4 million to resolve the allegations. This settlement comes after a lawsuit by the U.S. Department of Justice (DOJ) in 2021, which accused a former executive at Raytheon subsidiary Pratt & Whitney of participating in a long-running conspiracy to restrict the hiring and recruiting of engineers and skilled workers.

Background Information

The Wednesday settlement relates to a class-action complaint filed by workers against several companies and executives involved in the alleged no-poach agreement. The workers’ original complaint highlighted that the DOJ’s ongoing criminal investigation and prosecutions would not adequately compensate those harmed by the companies’ anticompetitive conduct. Without the class action, the affected workers would have been unable to obtain compensation for the harm they suffered, while the defendants would retain the benefits of their unlawful conspiracy.

Settlement details

The standout feature of the settlement is Cyient Inc.’s agreement to pay $7.4 million to the affected workers. Alongside Cyient, QuEST Global Services-North America, Inc., Parametric Solutions, Inc., and Agilis Engineering, Inc. have also reached settlement agreements, although the specific terms of those settlements were not disclosed.

Motion for Preliminary Approval

According to court documents, the plaintiffs intend to file a motion seeking preliminary approval of the settlements. This marks an important step in the process as it indicates the parties’ commitment to resolving the dispute and providing compensation to the affected workers.

Previous developments

In a similar case last April, a federal judge acquitted six executives named in the DOJ’s suit, ruling that the alleged agreement did not constitute an allocation of the relevant employment market in violation of federal antitrust laws. This decision served as a reminder that successfully proving the anti-competitive nature of a no-poach agreement can be a complex legal challenge.

Government crackdown on no-poach agreements

In recent years, the Department of Justice (DOJ) and other federal regulators have signaled their intent to crack down on no-poach agreements. While the results have been mixed, these efforts demonstrate a commitment to upholding fair competition and protecting the rights of workers.

Abandoned Criminal Indictment

Notably, in November, the DOJ abandoned its first-ever criminal indictment related to a no-poach agreement. This decision indicates the inherent challenges faced in prosecuting such cases and reinforces the need for civil litigation, like the class-action complaint in this settlement, to provide redress for affected employees.

Recent successful case

However, the agency has also achieved success in combating no-poach agreements. In 2022, the DOJ obtained a guilty verdict in a case involving a contractor providing nursing services to a Nevada school district. The contractor was ordered to pay $134,000 in penalties by a district court judge, illustrating that enforcement efforts can yield tangible results.

The settlement between the aerospace companies and the affected workers marks a significant step towards seeking compensation for individuals harmed by the alleged no-poach agreement. While the federal government’s crackdown on these agreements has faced challenges, civil litigation, such as class-action complaints, plays a crucial role in ensuring justice and providing recourse for employees. As the landscape surrounding no-poach agreements evolves, ongoing efforts by regulators will continue to shape labor markets, competition, and workers’ rights.

Explore more

AI Dominated the Retail Customer Experience in 2025

A retrospective analysis of 2025 reveals a retail landscape that underwent a seismic shift, where the steady evolution of customer experience was abruptly overtaken by a technological revolution powered by artificial intelligence. This transformation was not confined to a single sector or channel; it was a comprehensive overhaul that redefined the very nature of the relationship between consumers and brands.

Consumers Now Value Fairness Over Brand Loyalty

Why a Fair Price Now Trumps a Familiar Name In an economic climate defined by persistent inflation and heightened consumer anxiety, the long-standing relationship between brands and their customers is being fundamentally rewritten. The traditional pillars of brand loyalty—heritage, marketing, and perceived quality—are buckling under the weight of financial pressure. A new, more discerning consumer has emerged, one who is

What Replaced ‘The Customer Is Always Right’?

Beneath the hum of fluorescent lights in contact centers and across the polished floors of retail establishments, a quiet but firm rebellion has been dismantling one of the most foundational maxims in business history. For over a century, the phrase “the customer is always right” served as a revolutionary North Star for service-oriented businesses. This once-powerful principle, however, has evolved

AI Elevates the Human Role in Customer Service

The long-promised fusion of artificial intelligence and customer service has moved from a theoretical future to a tangible, operational reality for businesses worldwide, with 2024 marking a definitive period of widespread technological adoption. As organizations navigate this new landscape, they face a central and defining challenge: how to strategically integrate the immense power of advanced technologies like AI while carefully

AI Coding Boom Burdens DevOps With Flawed Code

The Unseen Cost of Accelerated Development The rapid integration of artificial intelligence into software development, heralded as a revolutionary leap in productivity, is paradoxically creating a significant and growing strain on DevOps teams. A global survey by Sonar reveals a striking trend: while developers are embracing AI coding assistants at an unprecedented rate, this adoption is flooding CI/CD pipelines with