Planning is Peace of Mind

Is a Non-Solicitation Clause or Agreement Enforceable in California?

Non-solicitation clauses are typically found within employment agreements or non-compete agreements (discussed here), but can be self-supporting agreements separate and appart from employment or non-compete contracts.

A non-solicitation agreement seeks to prevent an employee or owner (shareholder, LLC member, or partner) from doing one or both of the following after that person’s relationship with the company ends:

  • Solicit the company’s clients or customers
  • Solicit the company’s employees

California courts have held that non-solicitation agreements are per se unenforceable unless, like non-compete agreements, they relate to the sale of an owner’s interest in the business. Therefore, like non-competes, non-solicitation clauses may be enforced against selling shareholders of a C or S-corporation, members of an LLC, or partners, but cannot be enforced against employees.

Need a business attorney to help draft an ENFORCEABLE non-solicitation agreement, or have questions? Contact the Tagre Law Office today.

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