Non-Solicitation Agreements

Non-solicitation Agreements or provisions in an employment agreement restrict an employee’s ability to solicit the employer’s customers, business partners, and employees. Some states are more employer-friendly; some consider non-solicitation agreements void as a matter of public policy unless they protect trade secrets. Remember California’s Business & Professions Code section 16600 states: “Except as provided in this chapter, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” This section applies to non-solicitation agreements/provisions also.

 

Remember that solicitation can also be a breach of fiduciary duty.

 

This seems straightforward, but what if an entrepreneur has (former) co-workers and (former) clients, like many of us do, on social media, and posts about their new company? The result likely depends on the jurisdiction that governs. 📖 Compare the use of LinkedIn in the case of Bankers Life & Casualty v American Senior Benefits, LLC to its use in the Mobile Mini, Inc. v. Vevea case.

 

💡In light of the foregoing cases, how do you advise your client who likely needs social media to advance its entrepreneurial endeavors?

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To the extent possible under law, Samantha Prince has waived all copyright and related or neighboring rights to Entrepreneurship Law: Company Creation, except where otherwise noted.