Pa High Court Points Way To Valid Employer No-Poach Deals law360.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from law360.com Daily Mail and Mail on Sunday newspapers.
Anti-poaching deal between logistics firms unenforceable, Pa. high court rules
Agreement undermines free competition in the labor market in the shipping and logistics industry 1 minute read Pennsylvania Supreme Court ruled that anti-poaching agreement between Pittsburgh Logistics Systems and Beemac Trucking was unenforceable. Photo: Shutterstock
The Pennsylvania Supreme Court ruled Thursday that a no-hire provision between two Pittsburgh-based logistics firms is not enforceable under commonwealth law.
In its decision, the high court affirmed a Superior Court ruling that found the “no-hire, no-poach” agreement between freight broker Pittsburgh Logistics Systems (PLS) and Beemac Trucking, headquartered in Ambridge, Pennsylvania, was an unreasonable restriction of free trade.
‘No-hire’ deal that barred workers from switching employers is an unenforceable restraint of free trade, Pa. Supreme Court says
Updated Apr 29, 2021;
In a ruling that could impact business statewide, the Pennsylvania Supreme Court on Thursday ruled that a “no-hire” or “no-poaching” provision between two logistics firms is unenforceable and a violation of public policy regarding freedom of employment.
The provision between Beemac Trucking LLC and Pittsburgh Logistics Systems Inc. was intended to bar either firm from hiring away the other’s employees.
It became fodder for a court case when Beemac, which had a shipping contract with PLS, hired four PLS employees. PLS’ attempt to enforce the no-hire deal was denied by a Beaver County judge and the state Superior Court before the Supreme Court agreed to hear the case.