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New Caselaw Sheds Light on Enforceability of No-Hire Agreements Between Companies

Recent decisions signal that courts will carefully scrutinize “no-hire” and “no-poaching” agreements between companies, and that the enforceability of such agreements is not guaranteed. These agreements provide that one party will not hire — or poach — the employees of the other party to the agreement.

In Lodging Sols, LLC v. Miller (Lodging Sols), the Southern District of New York refused to enforce a no-hire provision entered into in connection with a potential corporate transaction. Similarly, in Pittsburgh Logistics Systems, Inc. v. Beemac Trucking, LLC, et al. (Pittsburgh Logistics Systems), the Pennsylvania Supreme Court refused to enforce a no-hire provision entered into in connection with a services agreement. Read more…