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I followed the link to get more information, the problem was that by having an agreement to not poach employees from each other served the companies but not the employees. One of the complaints was that this agreement caused the employees to get paid at a lower salary than they could get if they were able to move on. The telling part came at the end with an email response to Steve Jobs fom the CEO of Palm stating that that the agreement to to not hire employees from another company was wrong and probably illegal.