The Pennsylvania Supreme Court will now address the question, "Are contractual no-hire provisions which are part of a services contract between sophisticated business entities enforceable under the law of this Commonwealth?"
In March, Schnader wrote about the trend among federal agencies, state governments, and court decisions to question whether no-poach employment provisions are still acceptable. On July 24, 2019, the Pennsylvania Supreme Court announced that it will hear the appeal in Pittsburgh Logistics Systems Inc. v. BeeMac Trucking LLC. The Court is expected to either confirm the demise of employee non-solicitation clauses in commercial transactions or breathe life back into such provisions. Guidance from the Court about the scope of valid practices for using these clauses would be helpful for businesses and other employers subject to Pennsylvania law.
Stay tuned! Click here to read Schnader's earlier article, "No-poach employment provisions – are they still acceptable?" published in The PIOGA Press in March 2019. The article includes practical takeaways for what employers can do, even while this appeal is being heard, to protect their employee talent.
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