News & Analysis as of May 16, 2025

Restrictive Covenants

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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 -

Antitrust Guidelines for Worker-Related Business Practices: How to Stay on the Right Side of Antitrust Hiring Laws During the...

McCarter & English, LLP on 2/11/2025

The Department of Justice Antitrust Division (DOJ) and the Federal Trade Commission (FTC) (together, the Agencies) issued Antitrust Guidelines for Business Activities Affecting Workers (2025 Guidelines) in January. The 2025...more

You Better Watch Out: The OAG Is Stepping Up Enforcement of D.C.’s Non-Compete Ban

Epstein Becker & Green on 12/1/2023

Just over a year into the implementation of the Washington, D.C. Ban on Non-Compete Agreements, as amended by the Non-Compete Clarification Amendment Act of 2022 (together, the “D.C. Non-Compete Ban”), the District of...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

California Assists New York Employees in No-Poach Case

CDF Labor Law LLP on 8/15/2023

A private class-action complaint claimed that the department store, Saks, and several luxury brands (including Louis Vuitton, Loro Piana, Prada, Brunello and Fendi) violated Federal Antitrust laws when they agreed that each...more

Georgia Court of Appeals: Non-Solicitation-of-Employees Covenant Must Contain Express Geographic Limitation

Littler on 7/11/2023

The Georgia Court of Appeals recently provided important clarification of the requirements for non-recruitment covenants under Georgia’s 2011 Restrictive Covenants Act. In North American Senior Benefits, LLC v. Wimmer, 2023...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

Latest Decisions in Criminal No-Poach and Civil Non-Compete Cases Indicate Continuing Scrutiny of Restrictive Covenants

Jenner & Block on 7/13/2022

Parties in Criminal No-Poach Case Reach Pre-Trial Resolution - Recently, the parties in United States v. Hee notified District Court Judge Boulware of the District of Nevada that they reached a preliminary plea deal. The...more

Employee Talent Wars Gain Unprecedented Ammunition from Changing Antitrust Landscape

Holland & Knight LLP on 6/16/2022

The current labor market is fraught with challenges for employers. In the wake of the COVID-19 market disruptions, the demand for employees, especially for experienced or highly trained employees, far exceeds the supply....more

10 Takeaways as New Jersey Set to Drastically Limit Non-Competes and Other Restrictive Covenants

Fisher Phillips on 6/1/2022

The New Jersey legislature is currently considering legislation that would add the state to the growing list of jurisdictions that have significantly limited the scope and enforceability of non-competition agreements and...more

Department of Justice Prosecutions in Employment-Related Antitrust Suits Fall Flat in DaVita Inc. and Jindal

Jenner & Block on 4/27/2022

Juries Acquit Criminal Antitrust Defendants of All Charges - This month, federal juries acquitted defendants facing criminal antitrust convictions in two trials against employers accused of improperly restraining trade in...more

[Podcast] The Emerging New Era for Noncompetes and Trade Secrets: Nationalizing Competitiveness and Noncompete Law: Criminal...

BakerHostetler on 1/27/2022

Nationalizing Competitiveness and Noncompete Law: Criminal Antitrust and Federal Efforts to Curtail No-Poach and Noncompete Agreements is part five of BakerHostetler's six-part series, "The Emerging New Era for Noncompetes...more

Federal Regulators Taking Aim at Anti-Competitive Employment Practices

Burr & Forman on 8/27/2021

Employers in every sector use restrictive covenants to guard against loss of institutional knowledge, relationships, and training. These restrictive covenants come in three forms: “non-competition,” “non-solicitation,” and...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

Avoid Broad "No Poaching" Agreements With Clients

Parker Poe Adams & Bernstein LLP on 5/14/2021

A business’s employees are among its most valuable assets. Companies that provide professional services often run the risk that their clients may poach their employees. Think of information technology service providers,...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

Are You a Hospital or Health Care System with No Poach Agreements?

Pullman & Comley - Connecticut Health Law on 3/25/2021

“No poach agreements” have once again grabbed the legal headlines with a nationally known integrated provider of hospital and physician services a focus of the attention. Allegations of no poach agreements, agreements by...more

Antitrust In The Labor Market

Constangy, Brooks, Smith & Prophete, LLP on 3/5/2021

That which is old is new again. The U.S. Department of Justice and plaintiffs’ lawyers are taking aim at non-solicitation agreements restricting mobility of labor. This isn’t something employers usually think about. ...more

Franchisor 101: Open Season for Poaching in Washington

Lewitt Hackman on 12/20/2019

Washington State’s Attorney General settled a case against sandwich franchisor, Jersey Mike’s, over antipoaching provisions in its franchise agreements. Since 2018, Washington State has made agreements with more than 60...more

Maine Limits Use of Noncompetes and Prohibits Employer No-Poaching Pacts

Pierce Atwood LLP on 7/19/2019

Maine has joined the trend of other New England states, including Massachusetts, New Hampshire, and Rhode Island, in limiting the use of employee noncompete agreements. On June 28, 2019, Maine Governor Janet Mills signed...more

Washington State Legislature Sends Comprehensive Non-Compete Bill To Governor’s Desk

Jackson Lewis P.C. on 5/9/2019

On April 26, 2019, the two chambers of the Washington Legislature passed Engrossed Substitute House Bill 1450 (“HB 1450” or the “Non-Compete Act”), which regulates non-competition agreements with employees and independent...more

The New Landscape for Non-Compete Law in 2019 and Beyond

Baker Donelson on 3/19/2019

For years, employers have relied on the use of restrictive covenants to protect their companies from unfair competition by former employees and competitors. Original published in Maryland State Bar Association Section of...more

Aerospace & Defense Series: Antitrust Risks for Aerospace and Defense Contractors in Employment Practices

McDermott Will & Emery on 2/19/2019

As highlighted in a recent lawsuit, aerospace and defense contractors can face various antitrust risks when using certain tactics to prevent other companies from hiring their employees. See Hunter v. Booz Allen Hamilton...more

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