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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. ....

United States , Pittsburgh Logistics Systems Inc , Supreme Court , Beemac Trucking , Logistics Systems , ஒன்றுபட்டது மாநிலங்களில் , பிட்ஸ்பர்க் தளவாடங்கள் அமைப்புகள் இன்க் , உச்ச நீதிமன்றம் , தளவாடங்கள் அமைப்புகள் ,

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 ....

United States , Pittsburgh Logistics Systems Inc , Pennsylvania Supreme Court , Pittsburgh Logistics Systems , ஒன்றுபட்டது மாநிலங்களில் , பிட்ஸ்பர்க் தளவாடங்கள் அமைப்புகள் இன்க் , பென்சில்வேனியா உச்ச நீதிமன்றம் , பிட்ஸ்பர்க் தளவாடங்கள் அமைப்புகள் ,

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 ....

United States , Pittsburgh Logistics Systems Inc , Department Of Justice , Beemac Trucking , Services Contract , While The Pennsylvania Supreme Court , Pittsburgh Logistics Systems , Pennsylvania Supreme Court , ஒன்றுபட்டது மாநிலங்களில் , பிட்ஸ்பர்க் தளவாடங்கள் அமைப்புகள் இன்க் , துறை ஆஃப் நீதி , சேவைகள் ஒப்பந்த , போது தி பென்சில்வேனியா உச்ச நீதிமன்றம் , பிட்ஸ்பர்க் தளவாடங்கள் அமைப்புகள் , பென்சில்வேனியா உச்ச நீதிமன்றம் ,

On-Compete News: Open Season? Pennsylvania Supreme Court Invalidates No-Poach Provision Between Businesses - Employment and HR

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In a recent decision and case of first impression,
Pennsylvania s Supreme Court unanimously affirmed that a
no-hire of employees provision between a business and its vendor
was unenforceable because it constituted an unreasonable restraint
on trade. This continues a nationwide pushback against restrictive
covenants and underscores that Pennsylvania strongly disfavors such
restrictions unless they are narrowly tailored to protect a
legitimate interest and do not harm the public, including innocent
third parties.
Background
Pittsburgh Logistics Systems, Inc. (PLS) is a third-party
logistics provider that arranged for the shipping of its ....

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