Pa. High Court Points Way To Valid Employer No-Poach DealsOn May 7, 2021 by Schnader in Labor and Employment
Megan E. Harmon was quoted in an article by Law360, “Pa. High Court Points Way To Valid Employer No-Poach Deals.”
The Law360 article reports about a decision by the Pennsylvania Supreme Court in Pittsburgh Logistics Systems Inc. v. Beemac Trucking LLC. The Court “unanimously deemed a broad no-poach agreement between [the] two companies void as a matter of public policy.”
“Harmon, meanwhile, said employers could … increase their efforts to reach noncompete deals with individual employees rather than putting no-poach agreements into contracts with their business partners.
Alternatively, she said employers could potentially inform their workers when hired that they employ no-poach agreements as part of service agreements with outside businesses and get their workers to sign off on them.
On the whole, though, she said it was still possible for employers to protect themselves from losing workers to competitors without running afoul of the law.
‘I think the takeaway here is you have a means to enforce these kinds of restrictions; you just have to procedurally go through it the right way,’ she said.”