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Top 10 Non-Compete Law Developments of 2021 | Faegre Drinker Biddle & Reath LLP

The top 10 non-compete law developments in 2021 demonstrated a continued hostility by lawmakers and courts toward noncompetition and no-hire agreements, as well as the need for. ....

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Pennsylvania Supreme Court Voids No-Hire Provision In Service Contract Between Two Employers - Employment and HR

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Q: I heard that companies entering into commercial contracts in
Pennsylvania can no longer restrict each other from hiring their
employees. Is that true?
A: On April 29, the Supreme Court of
Pennsylvania held in
Pittsburgh Logistics Systems,
Inc. v. Beemac Trucking LLC, et. al. that a no-hire
provision (commonly referred to as a “no-poach”
provision) in a service contract between two business entities was
unenforceable as an impermissible restraint of trade because it was
overbroad and created a likelihood of harm to nonparties to the ....

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Pennsylvania Supreme Court Voids No-Hire Provision in Service Contract Between Two Employers | Troutman Pepper

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Q: I heard that companies entering into commercial contracts in Pennsylvania can no longer restrict each other from hiring their employees. Is that true?
A: On April 29, the Supreme Court of Pennsylvania held in
Pittsburgh Logistics Systems, Inc. v. Beemac Trucking LLC, et. al. that a no-hire provision (commonly referred to as a “no-poach” provision) in a service contract between two business entities was unenforceable as an impermissible restraint of trade because it was overbroad and created a likelihood of harm to nonparties to the contract (
i.e., affected employees and the general public). This decision comes at a time where there has been considerable concern that no-poach agreements violate federal and state antitrust laws. In this case, however, the Court did not conclude that all no-hire provisions found in commercial contracts are void as a matter of state law. ....

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Avoid Broad "No Poaching" Agreements With Clients | Parker Poe Adams & Bernstein LLP

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A business’s employees are among its most valuable assets. Companies that provide professional services often run the risk that their clients may poach their employees. Think of information technology service providers, engineering firms, marketing companies, and staffing firms. In order to prevent clients from hiring away personnel, many service contracts contain “no poach” or “no hire” provisions which restrict the client from hiring away the service provider’s employees.
A recent decision of the Pennsylvania Supreme Court serves as a reminder that the enforceability of such provisions is far from guaranteed. In ....

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No-Poach Agreements: Out Of The Frying Pan And Into The Proverbial Fire? | Vinson & Elkins LLP

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My colleagues and I have written much recently regarding governmental antitrust authorities’ review of no-poach conduct (for example, see here). But let us not forget the additional scrutiny such agreements can face in commercial litigation. A recent Pennsylvania Supreme Court case considered, for the first time in that state, whether such provisions are enforceable under Pennsylvania law when they are ancillary to a services contract between two businesses.
See Pittsburgh Logistics Sys., Inc.
v. Beemac Trucking, LLC., No. 31 WAP 2019, 2021 WL 1676399 (Pa. Apr. 29, 2021).
The case was brought by Pittsburgh Logistics Systems, Inc. (“PLS”), described as a logistics provider that arranged for the shipping of its customers’ freight with selected companies, against Beemac Trucking, LLC (“Beemac”), one of those selected companies. The Services Contract between the two companies apparently contained ....

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