Ninth Circuit Limits Labor Law Antitrust Exemption
In State of California v. Safeway, Inc. (“California v. Safeway”), the United States Court of Appeals for the Ninth Circuit answered the question of whether a profit sharing agreement that would ordinarily violate the antitrust laws was excused from compliance under the nonstatutory labor exemption. The Court found such an agreement was not excused from exemption, because it was not needed to make the collective bargaining process work. Instead, it constituted “an economic weapon used by the employers in their efforts to prevail in a labor dispute.”
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