Employmentmedium Risk Severity

Non-Solicitation Provision

Service businesses, agencies, and tech companies rely on non-solicitation provisions to prevent consultants or senior staff from taking team members or clients with them when they launch competing firms.

Plain-English Definition

A non-solicitation clause restricts a departing worker, agency, or contractor from actively recruiting employees of the counterparty, or poaching their clients and customers for a set duration.

Standard vs. Protective Language

Compare typical counterparty-favored phrasing against our attorney-approved balanced alternative.

Typical Aggressive LanguageFavor: Counterparty
For a period of twelve (12) months following termination of this Agreement, neither party shall directly solicit, induce, or encourage any employee or independent contractor of the other party to terminate their employment or engagement, without prior written consent.

⚠ Often leaves you exposed to uncapped liabilities or third-party indemnities without defense control.

LegalGPT Safer SubstituteRecommended
During the term and for one (1) year thereafter, neither party shall intentionally solicit for employment any employee of the other party with whom they had direct contact under this Agreement. This restriction shall not apply to general employment solicitations published to the public or employees who initiate contact on their own accord.
Balanced mutual liability & defense control

Dangerous Red Flags in this Clause

If you spot any of these phrases or omissions in your contract, pause and propose counter-language immediately:

Clauses that prohibit hiring an employee who responded independently to a public general job posting
Banning contact with any customer of the counterparty, even if you never interacted with them
Excessive liquidated damage penalties (e.g., demanding 200% of an employee's annual salary upon hire)
Indefinite or perpetual non-solicitation restrictions

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Frequently Asked Questions

What is the difference between direct solicitation and general recruitment?

Direct solicitation involves specifically reaching out to an individual employee with an offer to poach them. General recruitment involves posting a job opening on LinkedIn or your company website; hiring someone who applies to an open job is generally permitted if carved out.

Are non-solicitation clauses enforceable in California?

In California, employee non-solicitation agreements are viewed with heavy skepticism by courts as indirect restraints on trade under Business and Professions Code § 16600, while customer non-solicitation is strictly limited to protecting verified trade secrets.

Agreements Containing This Clause

Commercial and employment contracts where the Non-Solicitation Provision is routinely included and negotiated.

Related Companion Clauses

When redlining this provision, review these related clauses to prevent unintended liability shifts.