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ARTICLE · 26 OCTOBER 2011

Hiring Away the Competition

Recruiting talented employees is key to the success of any business.

United StatesEmployment and HR

Recruiting talented employees is key to the success of any business. Doing so can be tricky, however, particularly when the person you want to hire is working for the competition and is subject to postemployment restrictions, such as non-competition and customer non-solicitation covenants. The following provides some basic guidance for what you and your company should do when faced with such a situation.

Ask the right questions of the prospective employee.

Foremost, it is important to know whether the individual you intend to hire is bound by any post-employment restrictive covenants with a previous employer. Generally, you will be looking for non-competition, nonsolicitation agreements (possibly including restrictions against soliciting the former employer's employees, customers, contractors, suppliers, or vendors), and confidentiality agreements, but all potential restrictions should be explored. In addition to the more traditional employment agreement,

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