a) The lawsuit was settled in 2006 (ref andyjohnson0's post http://news.ycombinator.com/item?id=4687336). The article doesn't say when it was instigated, but it was likely a couple of years prior to that. In 2006, the tech industry was still working its way out of the collapse of the tech bubble.[1][2] Workers and companies were still pretty shell-shocked.
b) A lot of people live in places where the technology sector is not that strong and thus there are not that many options. Often moving is not a viable option due to family responsibilities or other circumstances.