Can You Sue A Company For “Poaching” Your Employees?
There is considerable competition for talent among companies across the United States. This competition has become so intense that many companies are now aggressively pursuing each other’s employees – effectively trying to steal the best and brightest from right under the noses of their rivals. But is this even legal? The simple answer is “not always.” The phenomenon of “poaching” employees is nothing new, but it is becoming increasingly prevalent in the modern era due to the unique circumstances of the modern labor market.
Whether you have been accused of poaching or your employees have been poached, you need to get in touch with a qualified, experienced business litigation attorney if you want to handle this situation with any modicum of efficiency. These legal professionals can help you push back and remain competitive in the modern labor market – whether you wish to file a lawsuit or defend against one. For best results, you should get in touch with a qualified attorney as soon as possible.
An Example of Poaching in Florida
On August 2nd, it was reported that Alliant Insurance Services had been sued for engaging in a “corporate raid” against its competitor. Although this particular incident occurred in Illinois, Alliant is currently facing similar, ongoing lawsuits in Florida. Various competitors have sued Alliant, and they are allegedly facing over 40 lawsuits for poaching.
In the words of one of the most recent plaintiffs:
“Alliant has stolen employees, customers, revenue, and confidential information, and it used present and former Gallagher employees to accomplish its unlawful goal. Alliant has effectuated its ‘leveraged hire strategy’ consistent with its past unlawful conduct directed at competitors, and Gallagher has unfortunately become a primary target.”
Among other things, Alliant is accused of enlisting outgoing employees as so-called “double agents.” These double agents apparently try to recruit other employees in their company on behalf of Alliant – all while continuing to receive paychecks from their soon-to-be ex-employers.
What Constitutes Poaching?
So when is poaching illegal? In the legal world, this is also known as “inducement.” In order to determine whether a company is guilty of inducement, six factors are considered:
- The reasonable expectations of both employees and employers
- Whether the employer actively sought out the employee
- Whether certain promises were made
- Whether the employee performed due diligence
- Whether the employer used certain persuasive techniques
- How long the new hire remained at the new company
Enlist the Help of a Qualified Attorney Today
If you’ve been searching for a qualified, experienced Miami business & financial dispute attorney, look no further than Alhalel Law. Over the years, we have assisted numerous businesses in the Miami area, and we know that employees can lead to all kinds of legal issues. Book your consultation today, and we can help you develop a winning strategy. This can help your business remain competitive and strive for greater profits in the years to come. Remember – internet research can only get you so far – so book your consultation today to get started.
Sources:
insurancejournal.com/news/national/2022/08/02/678411.htm
mckinsey.com/business-functions/people-and-organizational-performance/our-insights/gone-for-now-or-gone-for-good-how-to-play-the-new-talent-game-and-win-back-workers
