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
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.
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.
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.
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 -
Legally Enforceable or Not, Negotiation is Often the Key
What State's Law Applies to My Employment
Contract? What is a Choice of Law Provision?
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