McNees Minute: HO Hire Agreements

Sponsored Content: McNees Minute

Mark A. Hipple, Esq.
mhipple@mcneeslaw.com – 717-237-5367

The Pennsylvania Supreme Court recently issued a decision finding a no-hire agreement between two businesses to be unenforceable. A no-hire agreement, also known as a no-poach agreement, is frequently used in service contracts between two companies. In such agreements, one company agrees not to hire the employees of the other for a certain period of time. The question posed to the Supreme Court was whether no-hire provisions are enforceable under Pennsylvania law. The court did not answer the question directly, but did decide that the specific no-hire provision in this case was overly broad and unenforceable. However, the court left open the possibility that more narrowly drafted no-hire provisions could be enforceable. Companies that rely on no-hire provisions when doing business in Pennsylvania should revisit their commercial contracts to ensure they are enforceable. For more information on topics like this, register for the upcoming McNees labor and employment law seminar on June 10th and 11th. You can register by using the address below:

https://www.mcneeslaw.com/30th-annual-labor-employment-virtual-seminar/

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