News & Analysis as of June 3, 2025

No-Solicitation Agreements

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Hiring & Firing refers to the process of recruiting, interviewing and offering employment and the process of evaluating performance and dismissing employees. Hiring & Firing is a highly regulated area and can create tremendous liability for employers who fail to properly adhere to acceptable employment practices. Some of the potential pitfalls in this area stem from discriminatory hiring practices, improper performance evaluations, and retaliatory firings. less -

FTC Cracks Down on Use of No-Hire Agreements As Anti-Competitive

Seyfarth Shaw LLP on 12/23/2024

On December 4, 2024, the Federal Trade Commission (“FTC”) ordered building services contractor Guardian Industries, Inc. (“Guardian”) to cease enforcement of no-hire provisions it included in customer service agreements with...more

Seventh Circuit Revives McDonald's Employee No-Poach Litigation

Troutman Pepper Locke on 10/4/2023

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

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

Kilpatrick on 10/3/2022

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

Franchisor 101: All the King’s Poachers

Lewitt Hackman on 9/30/2022

A federal appellate court held that Burger King and its franchisees may violate Section 1 of the Sherman Act (antitrust) by engaging in concerted action when entering into “no-hire” agreements. The appellate court reversed...more

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

Robinson+Cole Health Law Diagnosis on 5/17/2022

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

[Webinar] Consequences of No-Poach Agreements: Civil and Criminal - May 24th, 10:00 am - 11:00 am PT

CDF Labor Law LLP on 5/11/2022

The Antitrust Division of the Department of Justice (DOJ) has stepped up enforcement over no-poach/no-hire agreements under Federal antitrust laws. The DOJ recently tried two criminal cases against individual officers of...more

Prominent Services Contractors Ensnared in No-Poach Class Action

Vinson & Elkins LLP on 9/23/2021

For many federal government contractors, their skilled and experienced workforce may be their most valuable asset. A recent “ice breaker” settlement of a class action lawsuit, however, demonstrates the wrong way to protect...more

So, You’re Saying There’s a Chance…5 Employer Takeaways to Enforce No-Hire Agreements

Fisher Phillips on 9/8/2021

In a recent decision, the Supreme Court of Pennsylvania examined whether no-hire agreements (which, as their name suggests, prohibit one business from hiring employees from another business), are enforceable under...more

DOJ Antitrust’s Ongoing Criminal Investigation of Labor Market Collusion in Health Care Industry Nets DaVita and Former CEO

The Volkov Law Group on 7/19/2021

The health care industry is taking it on the chin these days. As DOJ increases False Claims Act prosecutions, the primary targets are pharmaceutical, medical device and health care providers. ...more

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

Troutman Pepper Locke on 6/10/2021

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

No-Poach Agreements: Out Of The Frying Pan And Into The Proverbial Fire?

Vinson & Elkins LLP on 5/13/2021

My colleagues and I have written much recently regarding governmental antitrust authorities’ review of no-poach conduct (for example, see here). But let us not forget the additional scrutiny such agreements can face in...more

Pennsylvania Supreme Court Finds "No-Hire" Provision Unenforceable

Troutman Pepper Locke on 5/11/2021

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

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

Faegre Drinker Biddle & Reath LLP on 5/11/2021

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

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

FordHarrison on 5/10/2021

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

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

Littler on 5/5/2021

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

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

Fisher Phillips on 5/4/2021

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

Don’t Get Caught by Surprise – Oregon’s Workplace Fairness Act Provisions Take Effect October 1, 2020

Littler on 9/11/2020

The final provisions of Oregon’s Workplace Fairness Act (OWFA) go into effect on October 1, 2020—less than a month away. All employers doing business in Oregon will need to make changes to their harassment policies and...more

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

FordHarrison on 6/20/2020

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

Employers May Face No-Hire Claims

Nilan Johnson Lewis PA on 4/15/2020

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

No-Rehire Provisions Are No More in California Settlement Agreements

Fisher Phillips on 10/14/2019

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

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

Epstein Becker & Green on 6/27/2019

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

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

Blank Rome LLP on 2/15/2019

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

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

Cozen O'Connor on 1/30/2019

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

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

Troutman Pepper Locke on 1/28/2019

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

FRANCHISOR 101: No Poach for You

Lewitt Hackman on 8/1/2018

Franchise agreements commonly prohibit the franchisee from soliciting or hiring workers employed by the franchisor or other franchisees. This may take the form of “no-hire” or “no-switching” clauses that prohibit hiring each...more

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