The way companies approach no-hire provisions in contracts between commercial entities may have been significantly upended.
In January, the Superior Court of Pennsylvania affirmed a decision that a no-hire provision in a commercial contract between Pittsburgh Logistics Systems, Inc. and Beemac Trucking was unenforceable. PLS had sued after four of its employees went to work for Beemac despite the provision.
While there was no established law on the matter, the court’s majority concluded, among other things, that the provision violated public policy by restraining employees without providing them with consideration.
You can learn more about the decision here.