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What Is a Nonsolicitation Agreement, and Should I Use One?

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what is a nonsolicitation agreement and should I use one by Davis Law Group PC in Chesapeake, Virginia

What Is a Nonsolicitation Agreement, and Should I Use One?

October 21, 2022 Davis Law Group

A Nonsolicitation Agreement prohibits an employee from soliciting business contacts gained at your company, after they begin working for a new company.

Nonsolicitation Agreement vs Noncompete Agreement?

Both agreements are types of restrictive covenants. Nonsolicitation Agreements prohibit a former employee from tapping into a former employer’s current, prior, or prospective customers—or employees—for a specified time period. Noncompete agreements prohibit a former employee from working for a competitor or setting up a competing business for a specified time period and within a specific geographic area.

Why would I ask an employee to sign a Nonsolicitation Agreement?

A Nonsolicitation Agreement helps protect your business interests. If an employee who had access to your customer list left your company, they could start a competing business and use the list to try to lure away the clientele you have spent years building. They could also recruit valuable employees to leave your company and join them.

Are Nonsolicitation Agreements enforceable?

Yes, if they target your company’s legitimate business interests and include reasonable time restrictions. Balance is key. You have interests to protect, but so does the employee.

Davis Law Group Can Help

Our attorneys can help you create a Nonsolicitation Agreement that prohibits a former employee from soliciting your most important clients and customers. Contact our office to set up a no charge consultation so we can assist you in protecting your business interests.