States Look for New Angle to Fight No-Poach Agreements
Attorneys general in 10 states and the District of Columbia have recently launched an investigation into the employment practices of eight fast-food franchises, according to the Fisher & Phillips Non-Compete and Trade Secrets Blog.
Associate Liane Dublinski Kozik writes that the group sent a joint letter to the companies requesting information on the companies’ use of restrictive covenants including “‘employee non-competition,’ ‘no solicitation,’ ‘no poach,’ ‘no hire,’ or ‘no switching’ agreements (collectively referred to as ‘No Poach Agreements’).”
“No-poach agreements should be limited in scope and duration, and if no-hire provisions are included, they should be limited to upper-level management,” she advises. “State-level scrutiny from legislators and attorneys general is not going away and likely to only increase.”