Hiring Prospective Employees Bound By Non-Solicitation Agreements Sample Clauses

Hiring Prospective Employees Bound By Non-Solicitation Agreements. ‌ Employers should also consider prior employment agreements of prospective employees during the hiring process.107 Prospective employees may be encumbered by a non-solicitation agreement with a previous employer. This poses a risk for a hiring employer, as the prospective employee’s breach of a prior non-solicitation agreement, and liability thereunder, may be imputed 103 See Cal. Bus. & Prof. Code § 1600 et seq. 104 AMN Healthcare, Inc., 28 Cal.App.5th at 335-39. 105 See Xxxxxx v. Insight Global, LLC, 2019 WL 176260 (N.D. Cal. Jan. 11, 2019). 106 See Xxxxxxx, supra note 6, at 114. 107 See Xxxxxxx, supra note 6, at 125. to the new employer.108 Liability would extend to the new employer for breach of a non- solicitation agreement if the former employer could prove that the new employer had sufficient knowledge of the terms of the employee’s non-solicitation agreement with the former employer.109 The risk to an employer exists even if the new employee indirectly assists the new employer in engaging clients or employees from the employee’s former employer.110 In X.X. Xxxxxx & Co. x. Xxxxx Xxxxxxx & Co., an insurance brokerage firm, X.X. Xxxxxx & Co., brought an action against its former executives and officers, as well as their new employer, Xxxxx Xxxxxxx & Co., for breach of employment agreement (including breach of non-solicitation provisions) and various tort claims.111 The Superior Court of Pennsylvania affirmed the lower court’s ruling, holding that that Xxxxx Xxxxxxx & Co. was equally liable for soliciting X.X. Xxxxxx’x clients because it was familiar with the non-solicitation provision in the employment agreement, and further finding that a majority of Xxxxx Xxxxxxx & Co.’s yearly revenue came from X.X. Xxxxxx’x clients solicited by X.X. Xxxxxx’x former employees.112 In light of the X.X. Xxxxxx & Co. decision, it is critical for employers to sufficiently review a prospective employee’s previous employment agreement to ensure the prospective employee’s compliance under the agreement and to mitigate risk of imputing liability to the company due the employee’s breach of contract.113 108 See X.X. Xxxxxx & Co. x. Xxxxx Xxxxxxx & Co., 148 A.3d 454, 465-466 (Pa. Super. 2016). 109 See id. 110 See id. 111 See id. 112 See id. 113 Id.; see also Xxxx Elec. Group, Inc. x. Xxxxxxx Service Corp., 45 Fed.Appx. at 110 (stating that under Maryland law, an employer may be liable for an employee’s impermissible solicitation of clients if there is evidence that the employ...
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Related to Hiring Prospective Employees Bound By Non-Solicitation Agreements

  • Non-Solicitation of Employees The Executive will not, during the period of the Executive’s employment with the Company, and for a period of one year after the termination of the Executive’s employment with the Company for any reason, directly or indirectly, recruit, solicit or otherwise induce or attempt to induce any employee of the Company to leave the employment of the Company, nor hire any such employee at any enterprise with which the Executive is then affiliated.

  • Non-Solicitation Agreement Executive agrees and covenants that he will not, unless acting with the Company’s express written consent, directly or indirectly, during the Term of this Agreement or during the Non-Competition Period (as defined in Section 11 above) solicit, entice or attempt to entice away or interfere in any manner with the Company’s relationships or proposed relationships with any customer, officer, employee, consultant, proposed customer, vendor, supplier, proposed vendor or supplier or person or entity or person providing or proposed to provide research and/or development services to, on behalf of or with the Company.

  • Solicitation of Employees I agree that for a period of twelve (12) months immediately following the termination of my relationship with the Company for any reason, whether with or without cause, I shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees to leave their employment, or take away such employees, or attempt to solicit, induce, recruit, encourage or take away employees of the Company, either for myself or for any other person or entity.

  • Non-Competition; Non-Solicitation Executive acknowledges and recognizes the highly competitive nature of the businesses of the Company and its affiliates and accordingly agrees as follows:

  • CONFIDENTIALITY AND NON-SOLICITATION (a)Optionee hereby acknowledges that Optionee has or in the future may have access to the Company's trade secrets and proprietary or confidential information developed or acquired by or licensed to the Company, including, but not limited to, information regarding the Company's operations, business plans, customers or prospects, products, computer passwords or other information regarding network or systems access and research and development information, as such trade secrets and proprietary or confidential information may exist from time to time ("Confidential Information"). As consideration for the Option granted to Optionee hereunder, Optionee will not, at any time during Optionee's relationship with the Company, in whole or in part, disclose or cause any other person to disclose the Confidential Information to any other person or entity (except the Company) under any circumstances. In addition, Optionee will not, during the term of Optionee's relationship with the Company, and for a period of one (1) year thereafter, solicit or assist any other person or entity in soliciting any employee of the Company to terminate the employee's employment with the Company under any circumstances.

  • Non-Solicitation of Customers During the Restricted Period, the Executive shall not, directly or indirectly, solicit or induce, or attempt to solicit or induce, any customer, supplier, licensee, licensor or other business relation of the Company to terminate its relationship or contract with the Company, to cease doing business with the Company, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation and the Company (including making any negative statements or communications concerning the Company or their employees).

  • Non-Solicitation of Personnel During the term of this Agreement and for a period of one (1) year thereafter, Consultant will not directly or indirectly solicit the services of any Company employee or consultant for Consultant’s own benefit or for the benefit of any other person or entity.

  • Non-Competition and Non-Solicitation In consideration of the salary paid to the Executive by the Company and subject to applicable law, the Executive agrees that during the term of the Employment and for a period of one (1) year following the termination of the Employment for whatever reason:

  • Non-Solicitation Executive agrees that during the period of employment with the Company and for twelve (12) months after the date Executive’s employment is terminated for any reason, Executive will not, either directly or through others, solicit or encourage or attempt to solicit or encourage any employee, independent contractor, or consultant of the Company to terminate his or her relationship with the Company in order to become an employee, consultant or independent contractor to or for any other person or entity.

  • NEW EMPLOYEE INFORMATION Management will provide each new employee covered by this MOU a printed notice containing the following information only:

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