Hiring from a Competitor: Practical Tips to Minimize Litigation Risk

Thomson Reuters Practical Law April 2019

Peter A. Steinmeyer and Robert D. Goldstein, Members of the Firm, co-authored “Hiring from a Competitor: Practical Tips to Minimize Litigation Risk,” a Practice Note published by Thomson Reuters Practical Law. 

Following is an excerpt (see below to download the full version in PDF format):

In most industries, competition is not limited to battles over customers and clients, but also includes efforts to recruit, employ, and retain the most productive and talented workforce. In fact, many employers consider their employees to be their most valuable asset and vigorously work to prevent competitors from taking that asset. For that reason, litigation between competitors arising out of the recruitment of employees has become increasingly common. When a hiring employer becomes embroiled in such a dispute, the time and expense necessary to defend itself can easily outweigh the benefits of hiring the employee.

Fortunately, there are a number of steps a hiring employer can take to minimize the risk of litigation when recruiting employees from a competitor. This Note provides a number of practical suggestions for recruiting individuals from a competitor and significantly lowering the litigation risk for various associated claims.

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