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ARTICLE · 22 SEPTEMBER 2022

No-Poaching Agreements—Another Bad Approach To Non-Competition Agreements

Employers hate losing good workers in this sellers' market for employees. Such business needs often spawn reliance on non-competition/non-solicitation agreements sometimes designed to discourage workers from leaving.

United StatesAntitrust/Competition Law

Employers hate losing good workers in this sellers' market for employees. Such business needs often spawn reliance on non-competition/non-solicitation agreements sometimes designed to discourage workers from leaving.

State legislatures correctly view such overreaching as often unfair and have been in the process of limiting employers' ability to impose non-competes on lower-level workers. Indeed, the courts also recognize that the only legitimate basis for non-competition obligations on the part of employees stand rooted in trade secrets and customer relationships, not merely the desire to lock in employees as if they were indentured servants. As a matter of U.S. constitutional law, no legal basis exists for indentured servitude in any form—see the Thirteenth Amendment!

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