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Shifting Virus Expectations Dominated Pa. Legal World in 2021

Law360 Pulse

Pennsylvania's legal industry continued to cope with the complications and restrictions created by the ongoing COVID-19 pandemic in 2021, and while a light has appeared at the end of the tunnel as vaccinations become more readily available, many law firms have not yet seen a return to pre-pandemic normalcy.



Here, Law360 Pulse takes a look at noteworthy developments in the Pennsylvania legal industry.

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Noncompete Clauses

A major ruling from the Pennsylvania Supreme Court in April severely limiting no-poaching agreements generated a flurry of activity for employment lawyers in the state.

In a unanimous decision, the court ruled that part of a contract barring employee poaching between Pittsburgh Logistics Systems and Beemac Trucking was invalid under state law. The blanket no-hiring provision inked by the companies improperly cut the employees out of the negotiation, the court said.

"This was a really significant ruling by the Pennsylvania Supreme Court," said Leigh Ann Buziak, a partner at Blank Rome LLP's Philadelphia office. "The court has taken up the issue of restrictive covenants and noncompete clauses, and our clients have been paying attention to that."

Buziak, part of the firm's labor and employment practice, says her group has been receiving numerous calls from corporate clients about the ruling in the wake of the Great Resignation, a recent wave of employees leaving their jobs in search of higher-paid positions.

With no state law prohibiting no-poaching provisions, the dispute between PLS and Beemac is a case of first impression. The Supreme Court's unanimous decision does not ban outright the use of the provisions in contracts. Instead, it will require new contracts to be more precise with the language and not so overbroad.

There is no prohibition per se against noncompetes and nonsoliciting clauses in employee contracts, Buziak said, but the documents should be more precise. Companies continue to have a right to protect their trade secrets and intellectual property.

"Restraints on trade have to be carefully drafted and enforced," Buziak said. "When companies use them carelessly, it's not good for anybody. If they are careful, it can be tailored appropriately and enforceable. It's not something that gets thrown into a form contract."

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“Shifting Virus Expectations Dominated Pa. Legal World in 2021,” by James Boyle was published in Law360 Pulse on December 10, 2021.