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What is a non-solicitation agreement?

A nonsolicitation agreement is a contract in which an employee agrees not to solicit a company's clients or customers, for his or her own benefit or for the benefit of a competitor, after leaving the company.

Can non-solicitation clauses be enforced?

To be enforceable, the non-solicitation agreement must be specific as to the prohibited activities and include a timeframe during which the employee is not allowed to solicit business from the employer's clients, suppliers, or staff.

What should a non-solicitation agreement include?

A non-solicitation agreement is a common contract clause that says if you work for a competitor, you won't solicit any business clients, bring over any employees, or use any confidential information connected to your current job. In other words, you can't use your old company contacts to help your new company.

How long does a non-solicitation clause last?

How long does a non-solicitation clause last? A non-solicitation clause lasts according to the length of the contract. However, they may extend long after the relationship ends. Most non-solicitation clauses last for up to one year.

How binding is a non-solicitation clause?

California courts have already determined that non-disclosure and client/customer non-solicitation agreements are not valid or enforceable.

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Can I work for a competitor if I signed a non-solicitation?

A nonsolicitation agreement, by contrast, permits a broker to work for a competitor, but not to solicit clients of his previous firm.

How do I get around a non-solicitation agreement?

Escaping Nonsolicitation Agreements Don't sign. ... Build your book independently. ... Carve out pre-existing relationships. ... Require \u201cfor cause\u201d termination as the trigger. ... Provide for a payoff. ... Turn clients into friends. ... Don't treat clients as trade secrets. ... Invest in your own business.

How do you write a non-solicitation clause?

The clause was as follows: \u201c[Employee will not] \u2026 solicit, divert or hire, or attempt to solicit, divert or hire, to the competitive entity, any individual or entity, which was an actual or actively sought prospective client or customer of the company.\u201d

What happens if you break non-solicitation?

If you break a non-solicitation agreement, your former employer could issue a cease-and-desist order to try to stop you from violating the clause. They could also sue you and attempt to keep you from working at your new company, according to Carter.

How enforceable is a non-solicitation agreement?

A nonsolicitation agreement restricts an employee from soliciting the business of specific customers of the employer, typically within a set time period. Nonsolicitation agreements are almost always void and unenforceable in California.

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