Updated October 16, 2023
A Hawaii non-solicitation agreement is a contract that prohibits an employee from “poaching” a company’s clients, personnel, or contractors after leaving the job. Typically signed as part of the onboarding process or as part of a severance package, a non-solicitation agreement is intended to protect a business from its competitors.
Is It Legally Enforceable in Hawaii?
Yes. A non-solicitation agreement is enforceable in Hawaii if the restrictions are reasonable. (Technicolor, Inc. v. Traeger, 57 Haw. 113, 122 (1976)).
However, non-solicitation agreements are prohibited for employees of technology businesses. (§ 480-4(d))
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What Types of Solicitation Can Be Prohibited?
A non-solicitation agreement can restrict a former employee from soliciting the employer’s:
- Employees
- Clients or customers
- Independent contractors
- Other business affiliates
What Should Be Included in the Agreement?
For a restrictive covenant to be considered reasonable in a court of law, it must generally include the following:
1. Time Restriction
The agreement must include a set timeframe that the restrictive terms would apply. Generally ranging from several months to a few years, it must be considered reasonable.
2. Geographical Limit
The agreement should set a bound location or area that the individual is not allowed to engage in the specified activities.
3. Scope of Restricted Activities
The agreement should specify exactly what the individual is prohibited from doing and who they are not allowed to contact.
Related Forms
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Hawaii Non-Disclosure Agreement
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