For years, California courts have recognized the right of employers to use non-solicitation provisions in employment agreements to prevent employees from “soliciting” their coworkers to join them at a new employer. For instance, in 1985, a California appellate court in Loral Corp v. Moyes, 174 Cal.App.3d 268 (1985), held that a non-solicitation of fellow employees provision in an employment agreement was lawful because the co-workers were free to seek employment with a competitor, they just couldn’t be contacted first by the departing employee.
Continue Reading Co-Worker Non-Solicitation Provisions in Jeopardy?
Non-Competes and the “Trade Secret Exception” Revisited
We periodically discuss California law regarding non-compete provisions in this Blog. The California Supreme Court has made clear that non-compete provisions are unenforceable unless they fall within one of the statutory exceptions set out in sections 16601 et seq. (i.e., in connection with the sale of a business, goodwill, etc.). Over the years, courts have
Uncertain Future: Are Agreements Not to Solicit Employees Still Enforceable?
California courts have long held that agreements that prohibit a former employee from hiring a former co-worker are void. These decisions are based on California’s fundamental public policy (which is codified in Business & Professions Code section 16600) protecting workers’ rights to pursue any lawful trade or profession. With only a few narrow exceptions, California