Wednesday, August 22, 2012

Recruiters and Non-Compete Agreements in Pennsylvania

If You Are a Recruiter, You Have Probably Signed a Non-Compete Agreement

Nowadays, many companies are electing to hire independent contractors for specified projects as opposed to hiring employees on a full-time basis.  This is good news for recruiters.  However, virtually any recruiter that is hired is required to sign a non-compete agreement, which typically includes a non-solicitation clause. 

You May Want to Check Out John's Video That Discusses the Dos and Donts Where Non-Compete Agreements Are Concerned



Pennsylvania Courts Will Enforce a Non-Compete Agreement Only if Doing So is Necessary to Protect the Legitimate Business Interests of Your Former Employer

A standard non-compete agreement prohibits you from working for a competitor of your former employer for a period of time usually ranging from 1-2 years. 

A standard non-solicitation agreement will prohibit you from doing business with any of the corporate clients or individual candidates of your former employer for a similar time frame.

In most situations, courts will not enforce non-competition covenants because they are not truly needed to protect your former employer's business interests. After all, it is a big world, and how is one more recruiter in the vast sea of recruiters going to hurt your old company?

HOWEVER, as discussed below, all bets are off if, instead of merely working for a competitor of your former employer, you are poaching its former clients in your new job.

Click Here to read our recent Post concerning the practicalities of such clauses where IT Recruiters are concerned. 

Click Here to read our comprehensive post on the enforceability of non-competition agreements in general.

Pennsylvania Courts Will Enforce a Non-Solicitation Agreement if You Are Taking Clients From Your Old Firm and Causing it to Lose Money

Enforceable if You Are Soliciting Your Former Employer's Clients
The above headline says a mouthful, and one must parse through and understand each sub-proposition to understand the essence of Pennsylvania law where non-compete/non-solicitation agreements are concerned.

Here is a simple rubric:

Joe Employee joins new firm competitive with old firm but does not do business with corporate clients or candidates of old firm: non-compete generally will not be enforced;

Jane Employee joins new firm competitive with old firm and does business with corporate clients of old firm but not candidates: non-compete generally be enforced;

Joe Employee joins new firm competitive with old firm and does do business with individual candidates but not corporate clients of old firm: non-compete generally will not be enforced if Joe found candidates via social networks such as Linked-In, as opposed to via use of old employer's database that he had downloaded and kept after his job ended.

There Are Many Permutations to Pennsylvania Non-Compete Law

The fact is, each and every situation is essentially unique, and avoiding a lawsuit is the key goal, even if it means your earnings are deflated for a while.  Even so, you must understand that, no matter what you do, there is nothing anyone can do to stop your former employer from filing a lawsuit if that is what it wants to do.

Consequently, the best offense is a very sound strategy.  One must think through and carefully plan one's steps so that, if a lawsuit cannot be avoided, you may emerge victorious.

Philadelphia Are Non-Compete Contract Lawyer


Helping Individuals Deal With Non-Compete
Agreements Since 1991
Philadelphia Are Employment Attorney Representing Employees

John A. Gallagher is an employment lawyer who represents employees in Pennsylvania. 

John typically represents employees who need an employment lawyer in Philadelphia County, Chester County, Delaware County, Bucks County, Berks County, Lancaster County and Montgomery County.

Pennsylvania Employment Attorney Provides Free Telephone Consultations

If you are looking for an employment lawyer, and live in Malvern, Wayne, King of Prussia, Downingtown, Glenside, Doylestown, Radnor, Newtown Square, Exton, Philadelphia, West Chester, Skippack, Langhorne, Haverford, Nether Providence, Broomall, Drexel Hill, Reading or any of their surrounding towns, feel free to send me an e-mail or give me a call.  I am always glad to spend some time with people via a free telephone consultation.

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4 comments:

Attorney Recruiter New York said...

Absolutely the worst and most unprofessional agency I have worked with and I have worked with most all of them.

Attorney Recruiter Washington DC said...

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Attorney Recruiter Washington DC said...

I truly like to reading your post. Thank you so much for taking the time to share such a nice information.

security headhunters recruiters said...

There are so many comlex issues concerning independent contractors.. As na employee, you really need to "read between the lines" when signing an employment agreement.