Human Resources News & Insights

Recruiters sued for ‘poaching’

A recent lawsuit shows the dangers HR can face when hiring another company’s workers.

JP Morgan Chase has sued recruiting firm The IDW Group, alleging the firm broke a contract by enticing several JP Morgan employees to accept jobs with the company’s competitors.

JP Morgan alleges that IDW was under a contract to provide search services for the company — and then used proprietary information to poach employees for other companies.

It’s not just recruiting firms that can be accused of “poaching” — companies can sometimes face similar challenges when they do their own recruiting of workers at other companies.

In one recent case, an employer knowingly hired two employees who were still under a contract with a competing company.

The employer was held liable in court for helping the employees break the contract.

Cite: CRST Van Expedited, Inc. v. Werner Enterprises, Inc.

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  • AZ HR

    This is a case of breach of contract, not poaching. Every company should have a “will not recruit from” clause in their contract with a third party recruiter. Done right the clause should extend beyond the term of the contract–try to get a year at least.