Ancillary no-hire provisions in service contracts between sophisticated business entities aren’t always enforceable under Pennsylvania law, the state’s top court said Thursday in an issue of first impression.
Pittsburgh Logistics Systems Inc. contracts with companies like Beemac Trucking to ship its customers’ freight. Despite “no-poach” provisions in those agreements, Beemac hired four PLS employees—resulting in a PLS lawsuit against the trucking company and the former workers alleging breaches of contract, trade secrets violations, and other claims.
The Pennsylvania Supreme Court affirmed a trial court order that blocked the former employees from soliciting PLS’s clients, but didn’t prevent any from working ...
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