How Silicon Valley Conspired to Pay Workers Less So That CEOs Could Make More: Lawsuit Shows $9 Billion Stolen From Over 100,000 Workers

Click to enlarge image.
US CEO Pay: Has risen dramatically over the past three
decades. (Illustration from GDS Infographics)

By Kevin Drum
A while ago I read—but only vaguely processed—some coverage of a government antitrust action being taken against several big Silicon Valley companies who had agreed not to hire each other's employees. But until reading this Mark Ames story at Pando, I had no idea how widespread the conspiracy was.

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This was no mere informal gentlemen's agreement. It was a dogged, rear-guard fight against the rising wages of top engineers in the Valley:
 

That DOJ suit became the basis of a class action lawsuit filed on behalf of over 100,000 tech employees whose wages were artificially lowered — an estimated $9 billion effectively stolen by the high-flying companies from their workers to pad company earnings — in the second half of the 2000s. Last week, the 9th Circuit Court of Appeals denied attempts by Apple, Google, Intel, and Adobe to have the lawsuit tossed, and gave final approval for the class action suit to go forward.

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