In this slideshare we cover the restraints set in place by non-solicitation agreements on consulting professionals. In this slideshare we explore why these are set in place and how they are being combated along with the bullets listed below. • Limitations • Department of Justice • Hiring practices • Impact on competitive Healthcare IT employment market.

1. The Demise of
Non-Solicitation
Agreements

2. Nothing can be more disruptive to an
organization’s plans than the loss of
key personnel.

3. As a result, many times partnering organizations,
vendor/clients, client/client, and even competing organizations
will put in place formal and informal “agreements” to not hire
each other’s employees.

4. • These types of agreements have existed for many years
within various industries, Healthcare IT certainly being one
of them.
• In fact, over the past couple of years, some Healthcare IT
vendors and consulting firms have been very aggressive in
establishing policies as it relates to hiring practices.
• The most common of these types of agreements is as
simple as two organizations agreeing to not hire each
other’s employees.

5. Others may consist of a vendor telling its clients that they
cannot hire from their other clients, due to the disruptions
that may be caused to current projects.
Not much consideration is given to the limitations this puts
on the people who may want to take advantage of career
opportunities within the organizations with which their
current employer has such agreements.

6. Many of the organizations with which our firm works have
been very proactive in adding to their staffs over the last six
months and are now looking to implement policies with the
hopes of retaining their current staff for the long haul.

7. What may make things more difficult is a September 2010
settlement by the Department of Justice:
“In September, the Department of Justice announced that it has
reached a settlement with six high technology companies —
Adobe Systems Inc., Apple Inc., Google Inc., Intel Corp., Intuit Inc.
and Pixar — that prevents them from entering into no solicitation
agreements for employees. The department said that the
agreements eliminated a significant form of competition to attract
highly skilled employees, and overall diminished competition to
the detriment of affected employees who were likely deprived of
competitively important information and access to better job
opportunities.”
http://www.justice.gov/opa/pr/2010/September/10-at-1076.html

8. The agreements the six
organizations had in place did not
prevent them from “hiring” each
other’s employees.
If an employee from one of the
organizations were to apply for a job
on their own, the company to which
they applied could hire them.

9. They were in agreement only to
not solicit each other’s employees.
The Department of Justice had a problem with
just the “non-solicitation” part of the
agreement and how that could affect the
employee’s options and value in the
marketplace.

10. With this ruling, employers have a few fewer
tactics to prevent or limit turnover.
As these types of agreements are
dissolved, what impact will it have on
an already competitive Healthcare IT
employment market?

11. Learn More At HealthcareIS.com
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