April 29, 2021

No-Poach Agreements Take Another Punch

On April 29th, reports rang out regarding the Pennsylvania Supreme Court’s ruling that two employers’ agreement to not hire one another’s employees, aka no-poach agreement, was unenforceable.

This “No-Poach Approach” is not a new issue.  Last month you may have read the article about the Workforce Mobility Act, federal legislation that proposes to generally bar such agreements.

What’s all the fuss about?  Employees generally reap the rewards of a competitive labor market. Anti-trust and other laws restrict employers’ ability to reduce competition in that market. Competition can increase wages. Competition can increase employment opportunities for those seeking them.

As a result, the last few years have seen a plethora of new laws and legislation aimed at limiting or barring non-compete agreements between employees and employers; no-poach agreements between employers; and no-solicitation agreements, which prohibit a vendor or former employee from soliciting a current employee to resign and work somewhere else.  Know what your state law permits, prohibits, and limits when it comes to these types of agreements, whether between you and prospective employees, current employees, and other entities with whom you do business.

If you want more information, check out April’s webcast, “Employment Agreements: Non-Compete, No Solicitation, and Non-Disclosure,” plus non-disparagement and no-rehire! Still provides 1.25 HRCI & SHRM credits. $25 pp