Network Magazine Summer 2021 | Issue 23

Page 22

Can "No-Poach" Agreements Be Enforced? Probably Not. JOSHUA A. GILDEA, SHAREHOLDER FITZPATRICK LENTZ & BUBBA, P.C. Pennsylvania's Supreme Court recently ruled that contracts between businesses agreeing not to hire each other's employees of the other are not enforceable. Pennsylvania's highest Court, speaking on this legal issue for the first time, held that even where one company expressly agreed in writing not to hire employees of the other in what is often called "no-poach" or "no-hire" agreements, such a contract would not be enforceable. Instead, going forward,

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courts in Pennsylvania will block such agreements. The decision provides some guidance to employers and employees going forward. In support of this ruling, the Court reasoned that nohire provisions impair the employment opportunities and job mobility of employees who are not party to those agreements. The employees get nothing in return for the arrangement and may not even be aware that it has been made, yet they are restricted MyNetworkMag.com


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Network Magazine Summer 2021 | Issue 23 by Network Magazine - Issuu