Is It Legally Enforceable in California?

It is undetermined whether non-solicitation agreements may be legally binding in California. Non-compete agreements, which are broader and prevent a former employee from working in the same field as the former employer, are almost entirely prohibited by statute in California.^[1]

For years, however, courts in California had distinguished non-solicitation agreements from non-compete agreements and had generally allowed the former.^[2]

However, a more recent Court of Appeal decision struck down a non-solicitation agreement, citing a 2008 California Supreme court case,^[3] and doubted that Loral was still valid law.^[4]

Types of Solicitation to Prohibit

In general, a non-solicitation agreement can be used to restrict a former employee from recruiting, contacting, or hiring the employer’s:

Former or current clients and customers
Former or current employees
Independent contractors
Business associates

What to Include

What should you include in a non-solicitation agreement.

In order to stand up in a court of law, it is recommended that a non-solicit covenant include limitations on the following parameters:

1. Time Restraint

A non-solicitation agreement should contain a reasonable time restraint that can be proven necessary to protect an employer’s business interests while balancing the rights of the employee.