What is the difference between a non competition clause and a non-solicitation clause?

What is the difference between a non competition clause and a non-solicitation clause?

Non-compete clauses typically prevent an employee from working for an employer’s competitors after a work relationship has ended; whereas a non-solicitation clause prevents an employee from contacting a former employer’s clients in order to do business with them.

What is non-solicitation of employees?

A non-solicitation agreement is a contract, usually between an employer and an employee that governs the employee’s right to solicit customers of the business after he or she leaves his or her employment. Non-solicitation agreements are not always enforceable, however.

Are non-solicitation clauses enforceable?

Under California employment law, such agreements are void and illegal because they impinge on a worker’s ability to freely engage in gainful employment of their choosing. In fact, California courts have been known to accept limited employee non-solicitation agreements as being valid and enforceable.

Do you have an employee non solicit?

A non-solicitation clause typically refers to an agreement between an employer and employee that prohibits an employee from utilizing the company’s clients, customers, contact lists, etc. after such employee leaves/exits the Company.

What does it mean to have a non solicitation clause?

A non-solicitation clause prevents or limits an employee from “soliciting” clients (and often employees) of their former employer. Soliciting has a very specific meaning. In the simplest of terms, it occurs when a person contacts a former customer or business contact, and asks them to keep giving them business at their new company.

What are the restrictions on non-solicitation of employees?

Non-Solicitation of Employees. During the Restriction Period, the Executive shall not directly or indirectly contact, induce or solicit (or assist any Person to contact, induce or solicit) for employment any person who is, or within twelve (12) months prior to the date of such solicitation was, an employee of the Company or any of its Affiliates.

What’s the difference between NDAs and Non-Solicitation Agreements?

NDAs, as well as non-compete and non-solicitation agreements may be given to employees, business partners, independent contractors, or any other party who might gain information that would put your business secrets at risk. Chances are, you’ll never have to put your agreement through the court system.

Can a company breach a Non Solicitation Agreement?

In a 2012 Massachusetts case, a new employer announced on Facebook the name of someone who was joining their company and some of her customers replied. The court said that since there was no direct solicitation of clients, the agreement hadn’t been breached. The only way to test a non-solicitation agreement is to take it to court.