Are employers allowed to impose non-solicitation clauses in an employment contract?

In California, employers are permitted to include non-solicitation clauses in employment contracts. Non-solicitation clauses are a type of contract provision that restrict an employee from soliciting or attempting to solicit customers or employees of the employer at any time during or after employment. These clauses typically forbid the employee from competing with the employer in the same industry or in a similar capacity for a certain period of time. Non-solicitation clauses must be carefully drafted to ensure that they are enforceable. Generally, employers may not impose restrictions that are overly broad or unreasonable in scope. In addition, courts will also consider whether the clause is necessary to protect the employer’s legitimate interests, and whether it is reasonable given the employee’s role. In California, employers should be aware that courts will look more closely at non-solicitation clauses that attempt to limit the employee’s ability to work in a particular industry, or to actively recruit employees to a new employer. These types of clauses are likely to be found to be unenforceable. Overall, employers can include non-solicitation clauses in employment contracts, but it is important to make sure that the clauses are appropriately drafted and limited to protect the employer’s legitimate interests and not unduly restrict the employee’s ability to seek work.

Related FAQs

Are employers allowed to require employees to sign a non-disclosure agreement?
Are employers allowed to vary an employee’s wages without their agreement?
Are employees entitled to legally binding confidentiality clauses in their employment contracts?
Are employers legally obliged to carry out risk assessments for their employees?
Are employers obligated to provide training to their employees?
Are verbal contracts legally enforceable?
Are employers required to provide their employees with payslips?
Are employers obligated to provide a certain level of employee privacy?
Are employers obligated to provide an employee with a copy of their employment contract?
Are employers able to impose a probationary period on new employees?

Are employers allowed to impose non-solicitation clauses in an employment contract?

Related FAQs

Related Blog Posts