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> It is important to note that just about all of these kinds of policies violate the Right to Work laws in California. Specifically, if you block a hire based on this kind of policy and the employee loses their job and cannot find work, your company is liable for his wages. As a result, the business relationship with the other company must be extremely important for you to employ any kind of “hands off” policy.

I think this is an interesting aspect about business reasoning that a lot of people don't understand. Even though another comment here points out this isn't correct. If something is illegal and carries a risk of large fines or a large civil judgement, that doesn't mean you shouldn't do it necessarily. It just means that you have to weigh that potential cost against the benefits of doing it. If the benefits are greater, you go ahead and pay the fine or the litigation as a cost of doing business.

You don't change the way companies operate by going on about whether something is right or wrong. You have to introduce a cost larger than any potential benefit. If not hiring person X costs you a couple hundred thousand dollars in a civil judgement, but helps you keep a business partnership that's worth hundreds of millions in revenue, you'd have to be crazy to go ahead and hire someone from a business partner in those circumstances.