Pa. No-Hire Pact Ruling Holds Hidden Noncompete Lesson

Law360 (June 10, 2021, 2:00 PM EDT) -- Gluttony is one of the seven deadly sins for a reason. When more is taken than what is needed, the excess is wasted and often causes harm. This is the real lesson of Pittsburgh Logistics Systems Inc. v. Beemac Trucking LLC.

Pittsburgh Logistics called upon the Pennsylvania Supreme Court to determine whether no-hire clauses are enforceable in commercial contracts between business partners. The court's answer — maybe, if the clause passes a balancing test — is one that has garnered a lot of attention.

Given the holding and the fact that the no-hire clause in the case failed the test, much of the...

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