As businesses strive to protect their interests, non-solicitation clauses have become an increasingly popular inclusion in employment contracts. These clauses aim to restrict an employee`s ability to solicit clients or employees of their former employer, thus safeguarding their trade secrets and proprietary information.
Non-solicitation clauses can vary in their scope and duration, and their enforceability can be influenced by a number of factors, such as the state`s laws and the nature of the prior employment relationship. Here is an example of a non-solicitation clause found in an employment contract:
"During the term of the Employee`s employment with the Company and for a period of six (6) months following the termination of employment, the Employee shall not, directly or indirectly, solicit or attempt to solicit any of the Company`s clients or customers with whom the Employee had contact or became aware of during the term of their employment. In addition, the Employee shall not, directly or indirectly, solicit or attempt to solicit any of the Company`s employees for the purposes of recruiting them to another business or enterprise."
This clause is fairly typical in its length and scope. It prohibits the employee from soliciting any clients or customers with whom they had contact during their employment, as well as any employees of the company. The six-month duration is also fairly standard, providing a reasonable amount of time for the employer to transition these relationships to new employees or for clients to find new service providers.
It is important to note that non-solicitation clauses must be reasonable in order to be enforceable. A clause that completely restricts an employee from soliciting any clients or employees of their former employer, no matter how long ago they had contact with them, would likely be deemed unenforceable by a court.
In conclusion, non-solicitation clauses are an important tool for businesses to protect their interests, but they must be drafted carefully and reasonably to ensure enforceability. Employers and employees alike should seek the advice of legal professionals when drafting or reviewing these clauses in an employment contract.
