Non-solicitation agreements are commonly used in many types of businesses. These agreements prohibit an employee from soliciting the employer`s clients, customers, or employees for a certain period after leaving the company. The purpose of such agreements is to prevent employees from taking advantage of information or relationships obtained while working for the employer.
The enforceability of non-solicitation agreements varies from state to state, and it depends on the specific terms of the agreement. Generally, these agreements are legally binding if they are reasonable in terms of duration, geographic scope, and the type of employees or clients covered.
The duration of the non-solicitation agreement is an important factor in determining enforceability. In some states, a non-solicitation agreement that lasts longer than two years may be considered unreasonable and unenforceable. Similarly, if the geographic scope of the agreement is too broad, it may be considered overly restrictive and unenforceable.
Additionally, the type of employees or clients covered by the agreement must be reasonable and narrowly defined. For example, a non-solicitation agreement that prohibits an employee from soliciting any client that the employer has done business with in the past may be too broad and unenforceable. However, an agreement that prohibits an employee from soliciting clients with whom the employee worked directly while employed with the company may be more reasonable.
It`s worth noting that non-solicitation agreements are generally easier to enforce than non-compete agreements, which prohibit an employee from working in a similar industry for a certain period after leaving the company.
To enforce a non-solicitation agreement, the employer must first prove that the employee has violated the terms of the agreement. This can be difficult to do in some cases because the employer must provide evidence that the employee was directly soliciting clients or employees of the company. However, if the employer can prove that the employee violated the terms of the non-solicitation agreement, they may be able to obtain an injunction against the employee or sue for damages.
In conclusion, non-solicitation agreements are generally enforceable if they are reasonable in terms of duration, geographic scope, and the type of employees or clients covered. However, enforcement can be difficult if the employer cannot provide evidence of a violation. If you are considering implementing a non-solicitation agreement in your business, it`s important to consult with an experienced attorney who can help you draft an agreement that is both reasonable and enforceable.