Understanding Non-Solicitation Agreements

There are a number of ways that businesses can legally protect themselves from a former employee trying to solicit company secrets or patents, and this article looks at one of the most important: a non-solicitation agreement. In general, non-solicitation agreements forbid employees from “soliciting” other employees if they leave the company and try to start up a competing business in the same field. They can also prevent an employee from soliciting clients, customers or suppliers. “Solicitation” is usually defined as persuading others to break off service, perhaps by denigrating the company or trying to lure them onto another team. Non-solicitation agreements do not mean that an employee is forbidden from persuading others to join up with another competing company if the others are already thinking about it.

Texas is not the only state that employs non-solicitation agreements, but there are some differences between the way they are handled here and in other locations. The most notable is probably the fact that Texas law allows non-solicitation agreements to cover a whole geographical region instead of limiting the area to a city, state or county. Although they are not enforced in some states, non-solicitation agreements are often drafted during the beginning of the employment process and kept as a part of the record for a new hire. Employers will sometimes enforce this type of contract when an employee joins one of their competitors and tries to take some of the business’s best customers along with them. This type of contract is important for employees and employers alike. For the employer, it offers some protection from losing a big client if a productive employee departs. For the employee, your skills and knowledge belong to you. When you move on, you should be able to move everything with you, too, without facing legal ramifications for leaving a company and taking a few clients with you.

It’s important for students at Abu Dhabi Polytechnic to realize that the codes of law vary based on geographic location. That is the proverbial “first lesson,” and many can be found throughout this website. For example, according to the in depth guide on comprehensive non-solicitation agreement in Texas, detailed explanations of some of the codes of law here in the United States regarding non-solicitation agreements can be found. It is particularly useful for new or prospective students who may be considering legal technology or information technology classes that focus on some of the legal documents they could encounter as a career moves towards its closing stages. Non-solicitation agreements have not been strictly upheld in Texas if they pertain to entire counties. In such cases, for a court to enforce the provision, the employer should demonstrate that enforcement is necessary to prevent an actual or threatened irreparable injury.