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. 
Enforceable or Not, Non-Competes Limit Job Opportunities

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.
STAY AWAY from Former Clients!

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

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.

HERE ARE SOME OTHER ARTICLES YOU MAY FIND WORTHWHILE:

Are Non-Compete Agreements Enforceable in Pennsylvania?  How Can I Negotiate a Non-Compete?

Non-Compete Agreements and Trade Secret Litigation - The Fulcrum is Whether the Legitimate Business Interests of the Former Employer Are Detrimentally Affected by an Employee's Violation

Non-Compete Agreements - Legally Enforceable or Not, Negotiation is Often the Key

The Truth About Non-Competition Agreements That Your Employer Does Not Want You to Know - Mere Breach of Non-Compete Not Enough for Injunction

The Milkman Principle: Why Solicitation of Former Clients or Customers Will Always Get You in Hot Water in Pennsylvania if You Have a Non-Compete Agreement

Pennsylvania Employment Lawyers: How to Respond to Cease and Desist Letters Concerning Non-Compete Agreements

I am Being Offered Severance But Asked to Sign a Non-Compete in Pennsylvania - What Should I Do?  Pennsylvania Employment Attorneys Explain

Should I Sign a Severance or Separation Agreement Requiring Me to Consent to a Non-Competition Restriction?  Pennsylvania Employment Lawyers Discuss

What Fiduciary Duties do Employees Owe to Their Employers? Taking Your Employer's Confidential Information Before Resigning Violates an Employee's Duty of Loyalty

How Can I Contact My Old Clients and Customers Without Violating My Confidentiality, Non-Compete and Non-Solicitation Agreement?  Pennsylvania Non-Compete Lawyers

Trade Secret Clauses in Employment Agreements - Does My Employer Have Trade Secrets? Pennsylvania Non-Compete Lawyer

Confidentiality and Trade Secret Covenants in Employment Contracts are Always Valid, and Your Electronic Footprint Tells a Story

Insulation Corp. v. Brobston:  Is My Non-Compete Covenant Valid and Enforceable if I am Fired From My Job Under Pennsylvania Law?

Overly Broad Non-Compete Agreement in Pennsylvania?  Need an Attorney for Your Non-Compete Contract Dispute?

Kistler v. O'Brien:  I Signed My Non-Compete Agreement After I Started My Job - is it Enforceable Under Pennsylvania Law?

What State's Law Applies to My Employment Contract?  What is a Choice of Law Provision?

Non-Compete Agreements With Non-Solicitation Restrictions in Pennsylvania - Some Insight From Philadelphia Area Employment Lawyers

CALL TODAY AND WE CAN DISCUSS YOUR SITUATION AT NO COST TO YOU
610-647-5027

Philadelphia Are Non-Compete Contract Lawyers


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