In Pittsburgh Logistics Sys., Inc. v. Beemac Trucking, LLC, the Pennsylvania Supreme Court confronted an issue of first impression: whether “no-hire” provisions in contracts are enforceable. Here, a transportation logistics company hired a shipping company to transport freight. The parties’ contract contained a clause that prohibited the shipping company from hiring any of the logistics company’s employees. But the shipping company hired four employees away from the logistics company. After surveying other jurisdictions’ analysis of “no-hire” provisions, the Court held that this particular provision was intended to be broad, and thus it was unenforceable as an unreasonable restraint of trade.
