- Statutes: § 16600
- Legally Enforceable? Yes, but only if a statutory exception applies. Non-solicitation agreements are enforceable against:
- Requirements:
- Employee Solicitation: Agreements between the buyer and seller of a business may prohibit employee solicitation, but only those under employ when the sale took place.[1]
- Customer Solicitation: Must be narrowly tailored for the employer’s protection and not overly broad as to be construed as a non-compete.[2] These agreements are generally unenforceable unless:
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- The customer contact information is a protectable trade secret; or
- Enforcement of the agreement is required to safeguard the employer’s trade secrets.[3]
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Sources
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- Strategix v. Infocrossing, 48 Cal. Rptr. 3d 614 (2006)
- Kolani v. Gluska, 75 Cal. Rptr. 2d 257 (1998)
- Thompson v. Impaxx, Inc., 7 Cal. Rptr. 3d 427 (2003)
Related Forms (2)
California Non-Compete Agreement – This contract prohibits a company’s former employees from engaging in competitive business activity.
Download: PDF, Word (.docx), OpenDocument
California Non-Disclosure Agreement – Protects the confidentiality of private information shared between parties.
Download: PDF, Word (.docx), OpenDocument