Lateral Recruiting: Legal and Practical Concerns When Hiring from a Competitor and Strategies for the Former Employer and Employee to Limit the Damage

Event ID:13621

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CD Only                 $349.00 includes CD and materials
Duration: 90 minutes including question and answer period.
Presenter(s): Steven M. Kayman and John P. Barry, attorneys at law, Proskauer Rose LLP, New York, NY
Price: $349.00, CD includes full audio presentation, question and answer session and presentation slides. CD option is subject to a $5.95 handling charge.
CE Credits: This program has been approved for 1.5 general recertification credit hours toward PHR, SPHR, and GPHR recertification through the HR Certification Institute.
Who Should Attend? HR, financial officers, in-house counsel, trainers, and CEOs

The polite term is lateral recruiting. More pejorative appellations include lift-outs, raiding, poaching and predatory hiring. When groups of employees consider leaving together to join a competitor or form their own competitive enterprise, the stakes can be high and the legal terrain is uncertain. This is especially so if the departing employees have important customer relationships or had access to highly confidential information belonging to their current employer. There are risks all around. The old employer can suffer severe business losses. The departing employees can have their careers derailed if they are enjoined from beginning the new employment or prevented from dealing with some or all customers they had counted on taking with them. The new employer might not be able to enjoy the services of the new hires and be stuck honoring expensive indemnity obligations. Reputations can be injured; customers, not wanting to get caught up in a dispute or risk uncertainty, might go elsewhere; and everyone involved can end up spending a great deal of time and money on unproductive litigation.

No advice can cover all contingencies and there is some risk inherent in any group departure. But there are common mistakes to avoid when your company is doing the "raiding," and also some general principles to follow when your company is the subject of a "raid." Please join Steven M. Kayman and John P. Barry as they cover the legal issues a company faces when recruiting and hiring a competitor’s employees, what the former employer can do to protect itself, and what steps the employee should take to minimize his or her personal risk.


Among the topics that will be covered in this webinar are:

  • An overview of applicable legal principles, including variations by jurisdiction
  • Potential legal claims against departing employees and the new employer
  • Legal and practical risks
  • What departing employees can do to minimize risk
  • Risk management by the would-be new employer
  • What the company being raided can do to contain the damage or obtain redress for injuries suffered


Your conference leaders for “Lateral Recruiting: Legal and Practical Concerns When Hiring from a Competitor and Strategies for the Former Employer and Employee to Limit the Damage” are Steven M. Kayman and John P. Barry with Proskauer Rose LLP in New York.

Steven M. Kayman is a partner in Proskauer's Litigation Department. He focuses on intellectual property litigation but, in his 30-plus years of practice — all with Proskauer — he also has had extensive experience in litigating disputes involving securities, bankruptcies and workouts, real estate, employment, contracts and many other commercial matters. Steve founded Proskauer’s Non-Compete and Trade Secrets group and has served as a co-head of the group for many years. He also chaired Proskauer’s firmwide Technology Committee for eight years, with oversight responsibility for all of Proskauer’s information services, technology, knowledge management and practice support operations. Steve has particular experience and command in matters involving the movement of employees between competitors, the appropriation of trade secrets, employee raiding and liftouts, and agreements containing non-competes and other restrictive covenants.

John P. Barry is a partner in the Labor & Employment Department and co-head of the Non-Compete & Trade Secret Group. John is an experienced trial lawyer who has appeared in courts across the U.S., and is sought out by clients for their most sensitive, sophisticated and important restrictive covenant, trade secret and employment matters. He is able to quickly dissect the issues and recognize the pressure points of how a case will unfold before a jury, court or administrative agency. He regularly "jumps in" to assist clients with situations involving an executive's departure, a mass exodus (or raid) or the planned hire of an employee or team of employees from a competitor.


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