Multiple Issues In Corporate Raiding Of Employees: Outside Counsel

Date
Backup: Executive Summary
by Wendi S. Lazar
Outten & Golden LLP
Description

Wendi S. Lazar and Katherine Blostein, New York Law Journal (online), May 1, 2009

Now that bankruptcy proceedings have replaced mergers and acquisitions, poaching key employees rather than buying a division can be cost effective. Corporate raiding of employees, however, raises serious legal and financial concerns for everyone involved, but particularly for employees and their counsel.

Poaching a coveted employee or raiding a team is bound to leave behind an angry employer who wants revenge. The hardest job for employee-side counsel is to keep the client from becoming a defendant in a lawsuit against both the employee and the new employer.

Knowing how to prevent or minimize an employee's liability in this situation is critical. Counseling employees on terms and conditions to be negotiated with the new employer before departure will protect them from economic loss and protracted and costly litigation.