2.2.1 Policy and Required Action 

In recognition of the potential financial loss and disruption to a partner’s business from the loss of an employee, Team PRP strongly discourages Team PRP partners from hiring employees from each other. This policy sets forth the process and protocol that Team PRP partners must follow.

a.  This policy pertains to current employees of a Team PRP partner. If a person is no longer employed by a Team PRP partner because he/she was laid off or terminated, another team PRP partner may hire that person as long as the partner follows this policy.  However, a Team PRP partner cannot circumvent this policy by communicating with an employee of another PRP partner to cause or encourage that employee to resign and then seek to accept employment with the other PRP member.

b.  If a situation arises where a Team PRP member believes it is necessary to recruit and hire another Team PRP member’s current employee, Team PRP requires the two partners to proceed as follows:

1)  Immediately advise the other Team PRP partner of your intent to recruit the employee well in advance to give the other facility a reasonable  opportunity to attempt to retain the employee or prepare for the departure.

2)  Offer to compensate the other facility, at least in part, for the loss of the employee.

3)  In your discussions with the owner or manager of the other Team PRP facility where the person is employed, you must make every reasonable effort to accommodate the needs and requirements of the other facility.

4)  If the decision is made to recruit and hire the other member’s employee, and the applicant is currently employed at the other member’s facility, negotiate a starting date that can help the current employer minimize the impact of the departure. It would not be unusual for the current employer to request that the applicant not be allowed to start work at your facility for at least 30 working days, or less if approved by the current employer. This will help improve the transition and allow the current employer to initiate its search for a replacement.

c.  In situations where an employee of a Team PRP facility initiates interest in employment with another Team PRP facility, Team PRP requires the two partners to proceed as follows in addition to the terms and conditions stipulated herein.

1)  As soon as the potential new employer learns that the applicant currently works at, or has recently resigned from another competing Team PRP facility, the Team PRP partner must tell the applicant you are required by Team PRP standards and policy to let the other Team PRP partner know of the applicant’s interest in employment.

2)  Initiate communication with the owner or manager of the other Team PRP facility to inform them of the fact that the employee has inquired, solicited or applied at your facility.

3)  If the applicant currently works for a Team PRP member in a management, financial, or sales position, it is understood that this person will have access to the facility’s trade secrets and confidential information.  In such a situation, the prospective new employer must allow the existing employer sufficient time to seek to retain the employee.  The prospective new employer should not offer employment to the person until after the current employer has advised that it is not able to retain the employee.

2.2.2. Remediation Process

Team PRP members agree not to file legal action in court or any other administrative agency or dispute resolution provider against a partner who violates this hiring policy or in favor of a partner who believes it has been negatively impacted, financially or otherwise, by another partner who violated this policy. The only remediation and relief available is via the existing Dispute Resolution Process since such alleged violation is considered to be an ethics violation and/or a violation of Team PRP standards both of which are subject to the dispute resolution process.

A Team PRP member who believes and can substantiate that it has been harmed by the hiring practices of another Team PRP member in violation of the policies described above should proceed as follows:

a.  File a complaint in accordance with the dispute resolution process described in a separate section of the Operations Guide. The complaint is to be filed with the Dispute Resolution Coordinator who will then request a response from the other facility and then submit it to the Dispute Resolution Committee. The complaint must include substantiating documents as defined in the Dispute Resolution Process.

¹ Team PRP stipulates that Virginia law applies to any legal evaluation of this policy.

b.  In addition to the resolutions described in the Dispute Resolution Section, upon finding that this policy has been violated, the committee may also impose these remedies:

1) For a non-management or non-supervisory position, the larger of $5,000 or up to 1.5 times the monthly salary being offered to the new employee or, if the employee will be in a pay for performance program, 1.5 times the average monthly pay for other employees in a similar position at the previous employment.

2)  For a management position, the sum equivalent to 6 months of pay, averaging the salaries of an equal number of months at the old and new position, if not the same. If the manager will be in a pay for performance or bonus position, the calculation must include the performance or bonus portion allocated for six months of wages, calculated using an average of similar salary positions at the old and new companies.

3)  For sales positions, the sum equivalent to 6 months of pay, averaging the salaries of an equal number of months at the old and new position, if not the same. If the sales person will be in a pay for performance or bonus position, the calculation must include the performance or bonus portion allocated for six months of wages, calculated using an average of similar salary positions at the old and new companies.

c.  The two parties are free to negotiate a different remedy and Team PRP will agree to those terms if both parties agree.

d.  The dispute resolution case will be assumed to be closed when the complaining party indicates it has been resolved to its satisfaction and proof of payment of the penalty or resolution of the case is provided to Team PRP.

Document updated: Jan 18, 2024

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