Hiring from a Competitor: Practical Tips to Minimize Litigation Risk

Thomson Reuters Practical Law

Robert Goldstein, a Member of the Firm in the Litigation and Health Care and Life Sciences practices, in the New York office, and Peter Steinmeyer, a Member of the Firm in the Labor and Employment practice, in the Chicago office, co-wrote an article titled "Hiring from a Competitor: Practical Tips to Minimize Litigation Risk."

Following is an excerpt:

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, most 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 litigation risk for various associated claims.