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

Yes, employers in Hawaii are allowed to impose non-solicitation clauses in an employment contract. Non-solicitation clauses are designed to protect employers from employees who might poach clients or customers. They restrict the use of confidential information or trade secrets for the employees’ own gain or for the benefit of a competitor. Non-solicitation clauses typically include a restriction of time periods, which may for example be two or three years after the employee leaves the company. The clause may also include a geographical limitation. For instance, the clause may prohibit soliciting customers within a certain geographic radius for a certain time. Under Hawaii law, employers should be aware that non-solicitation clauses must be reasonable in duration and geographic scope, or else the courts may consider them void. Employers must also remember to update the agreement if the employee’s job duties or geographical work area changes. Employers should also be aware of potential federal law implications when implementing a non-solicitation clause in an employment contract. For example, if employers seek to restrict competition by limiting employees’ ability to work for a competitor, the National Labor Relations Board may deem such restrictions unlawful. Therefore, employers should consult with an employment law attorney in Hawaii to ensure the clause in the employment contract is enforceable.

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

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