News & Analysis as of

Employer Liability Issues No-Hire/No-Solicitation Agreements

Proskauer - California Employment Law

It’s Almost Valentine’s Day – And Love and Noncompetes Are In the Air!

As we previously reported, California recently enacted AB 1076, which reinforces the state’s broad statutory ban on noncompete agreements. The law took effect on January 1, 2024, and expressly codifies Edwards v. Arthur...more

Troutman Pepper

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

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In June of 2022, McDonald’s obtained a judgment on the pleadings, ending antitrust litigation challenging the legality of the no-hire restraints it previously included in its franchise agreements. More than a year later, the...more

Kilpatrick

Class Action | Eleventh Circuit Reinstates No Hire Antitrust Claims Against Burger King

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Partner Jay Bogan recently discussed the Eleventh Circuit Reinstating No Hire Antitrust Claims Against Burger King....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Eleventh Circuit Serves a Whopper of a Ruling on Franchisor’s ‘No-Poach’/‘No-Hire’ Agreement With Franchisees

​​​​​​​Over the last several years, business-to-business “no-hire” and “no-poach” agreements have come under legal attack, including through enforcement actions by the Federal Trade Commission and criminal prosecutions by the...more

Robinson+Cole Health Law Diagnosis

Connecticut Prohibits No-Hire Provisions in Homemaker and Home Health Agency Contracts

As previously addressed on this blog, Connecticut Governor Ned Lamont recently signed into law the state’s fiscal year 2023 budget (HB5506) (Act). Among other things, the Act prohibits homemaker-companion or home health...more

Proskauer - Law and the Workplace

Sweeping Expansion of Protections Relating to Workplace Discrimination on the Horizon in New York State

A suite of bills aimed at further enhancing protections for both employees and independent contractors regarding discrimination, harassment and retaliation in the workplace are on the horizon in New York State. Several of...more

Troutman Pepper

Pennsylvania Supreme Court Voids No-Hire Provision in Service Contract Between Two Employers

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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?...more

Troutman Pepper

Pennsylvania Supreme Court Finds "No-Hire" Provision Unenforceable

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The Supreme Court of Pennsylvania recently affirmed a Superior Court order in Pittsburgh Logistics Systems, Inc. v. Beemac Trucking, LLC et al., No. 31 WAP 2019, finding a no-hire provision between competing, sophisticated...more

Faegre Drinker Biddle & Reath LLP

The Pennsylvania Supreme Court Strikes Down a No-Hire Agreement as an Unreasonable Restraint on Trade

Recently, in Pittsburgh Logistics Systems, Inc. v. Beemac Trucking, LLC, No. 31 WAP 2019, — A.3d –, 2021 WL 1676399 (Apr. 29, 2021), the Pennsylvania Supreme Court found that a no-hire provision that was ancillary to a...more

FordHarrison

Non-Compete News: Open Season? Pennsylvania Supreme Court Invalidates No-Poach Provision Between Businesses

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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...more

Littler

Pennsylvania Supreme Court Decides Issue of First Impression on “No-Hire” (or “No-Poach”) Agreements

Littler on

The Pennsylvania Supreme Court recently decided an issue of first impression regarding “no-hire” (or “no-poach”) provisions in commercial contracts between two companies. In such agreements, one company agrees not to solicit...more

Fisher Phillips

Supreme Court of Pennsylvania Provides A 7-Step Roadmap to Employers While Striking Down No-Hire Agreement

Fisher Phillips on

In a decision resolving a dispute that has been pending for nearly five years, the Supreme Court of Pennsylvania just voided a no-hire provision entered into by two companies that bound one of them from hiring former...more

Sheppard Mullin Richter & Hampton LLP

New Employment Laws to Look Out for in 2021

On January 1, 2021, various new and amended employment laws will go into effect in California. Below is a summary of some of these laws that employers should make themselves aware of heading into the new year. All laws...more

FordHarrison

Non-Compete News: No-Hire Provisions Under the Georgia Restrictive Covenants Act

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Executive Summary: The Georgia Restrictive Covenants Act (O.C.G.A. § 13-8-50, et seq.) (“RCA”) governs restrictive covenant agreements in Georgia entered into after May 2011. The RCA expressly addresses non-compete,...more

Nilan Johnson Lewis PA

Employers May Face No-Hire Claims

Nilan Johnson Lewis PA on

Saks Fifth Avenue and several luxury designers were recently hit with a nationwide class-action lawsuit regarding their alleged use of no-poach agreements to limit solicitation of retail store employees between Saks and the...more

Hinshaw & Culbertson LLP

California Law Prohibits No-Rehire Provisions in Settlement Agreements

Hinshaw & Culbertson LLP on

California law typically frowns on contracts that restrict a person's ability to engage in trade for their chosen profession. In keeping with this philosophy, the California legislature has passed AB 749, which was recently...more

Fisher Phillips

No-Rehire Provisions Are No More in California Settlement Agreements

Fisher Phillips on

Between pumpkin carving and cookie baking, Californians now have one more thing to add to their holiday to-do lists: reviewing their standard settlement agreements to remove any no-rehire provisions. California employers have...more

Epstein Becker & Green

Managing Employee Mobility Today: Are You Succeeding or Scrambling? - Take 5 Newsletter

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The 2019 legal landscape of employee mobility continues to evolve, at times drastically. Courts and legislatures are giving increased scrutiny to employers’ claims to protect the confidentiality of their trade secrets and...more

Blank Rome LLP

We Are Hiring: PA Superior Court Upends the Law on “No Hire” Agreements

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Countless companies contract with other companies to provide services and include a “no hire” provision (pursuant to which the parties to the contract agree to not hire employees of the contracting company) in the service...more

Cozen O'Connor

Pennsylvania Court Joins Trend in Holding No-Hire Agreements are Unenforceable as a Matter of Law

Cozen O'Connor on

On January 11, 2019, in Pittsburgh Logistics Systems, Inc. v. BeeMac Trucking, LLC and BeeMac Logistics, LLC, a panel of nine judges sitting en banc affirmed a ruling holding that a no-hire agreement between two companies was...more

Troutman Pepper

Are No-Hire Provisions Now Void and Unenforceable Under Pennsylvania Law?

Troutman Pepper on

On January 11, an en banc panel of the Superior Court of Pennsylvania affirmed a trial court’s decision declaring that a no-hire provision in a commercial contract between two businesses was void and unenforceable under...more

Skadden, Arps, Slate, Meagher & Flom LLP

Shifting Enforcement of No-Poaching Agreements

Fifteen months after the Antitrust Division of the Department of Justice (DOJ) announced its intention to criminally pursue no-poaching agreements — in which competitors agree not to recruit or hire each other’s employees —...more

Seyfarth Shaw LLP

Franchise “No-Hire” Agreement Class Actions And The Single Enterprise Defense

Seyfarth Shaw LLP on

Seyfarth Synopsis: There are currently pending at least four class actions claiming that provisions contained in franchise agreements prohibiting the hiring of employees of other intrabrand franchisees without the consent of...more

Orrick - Trade Secrets Group

Employee Non-Solicitation And No-Hire Covenants? What’s The Scoop, California?

The law in California is well settled that, with few exceptions, non-compete agreements are unenforceable. Less clear is whether and to what extent employee non-solicitation and no-hire agreements can withstand a court’s...more

Seyfarth Shaw LLP

Court Certifies Class In Duke-UNC No-Hire Workplace Antitrust Lawsuit

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Seyfarth Synopsis: On February 1, 2018, the U.S. District Court for the Middle District of North Carolina entered an order granting in part, and denying in part, the plaintiff’s motion for class certification in a no-hire...more

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