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Collect your candidates carefully - 12/2000

Headhunting prohibited

Be careful where you collect your candidates. Some disgruntled employers are suing firms that steal their workers. Net2Phone of New Jersey is
taking California-based Dialpad.com to court for luring away two workers. The Web-based phone company says its employees signed non-compete agreements that legally prevent them from working for the competition right away. A New Jersey judge has issued a temporary injunction stopping the two employees from working at DialPad.com until the case is settled. The verdict could change recruiting and hiring practices in California. Silicon Valley companies are used to lots of employee movement between companies within the same industry. Some analysts say a ruling against job-hopping to the competition could stifle growth. According to one expert, This is what allowed Silicon Valley to develop so wellĂ–because employees were free to move around and anything that interferes with that is no good.

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