Pa. Justices' Ruling Presents Big Hurdles For No-Poach Pacts

Law360 (May 19, 2021, 3:44 PM EDT) -- The Pennsylvania Supreme Court in a recent decision may have undercut employer no-poach agreements that many business people and lawyers had thought were lawful and enforceable in the state and in many other jurisdictions. The case, Pittsburgh Logistics Systems Inc. v. Beemac Trucking LLC,[1] was the court's first on the enforceability of such agreements.

Generally, no-poach agreements are those among employers not to hire or solicit to hire each other's employees. The Pennsylvania Supreme Court focused on an outright ban on hiring.[2]

The U.S. Department of Justice,[3] many state attorneys general[4] and several courts[5] have justly condemned certain no-poach agreements. Such...

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