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Pennsylvania Supreme Court Voids No-Hire Provision In Service Contract Between Two Employers - Employment and HR


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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?
A: On April 29, the Supreme Court of
Pennsylvania held in
Pittsburgh Logistics Systems,
Inc. v. Beemac Trucking LLC, et. al. that a no-hire
provision (commonly referred to as a “no-poach”
provision) in a service contract between two business entities was
unenforceable as an impermissible restraint of trade because it was
overbroad and created a likelihood of harm to nonparties to the ....

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