Employee Poaching, Predatory Hiring, and Covenants Not to Compete

Kim, Jin-Hyuk (2007): Employee Poaching, Predatory Hiring, and Covenants Not to Compete.

Abstract

Poaching key employees from close competitors has become a prevalent and controversial issue. This paper examines the condition under which employee poaching can be either predatory or competitive, and discusses its implications for the enforcement of post-employment non-compete agreements. When poaching sufficiently injures the entrant’s ability to compete, predatory hiring can occur in the sense that the incumbent would have been unprofitable in the absence of the entrant’s exit. Some antitrust implications are discussed.

• Item Type: MPRA Paper
• Language: English
• Keywords: employee poaching, non-compete covenants, predation
• Subjects: J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J63 - Turnover ; Vacancies ; Layoffs; J - Labor and Demographic Economics > J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers > J68 - Public Policy; K - Law and Economics > K3 - Other Substantive Areas of Law > K31 - Labor Law; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M5 - Personnel Economics > M55 - Labor Contracting Devices

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