Employee Non-solicitation Clause
(CA)

Summary

This template is an Employee Non-solicitation Clause (CA). It is intended for private employers. This Employee Non-solicitation Clause (CA) has been customized to comply with California law. As a result, the text of this template differs from the non-jurisdictional Customer and Employee Non-solicitation Clause. The drafting note addresses issues under California law. IMPORTANT NOTE: On April 23, 2024, the FTC issued its final rule prohibiting new non-compete agreements with all workers. The rule provides that existing non-compete agreements with senior executives remain in force, and existing non-competes with all other workers are not enforceable. The term “senior executive” means a worker who makes more than $151,164 and who is in a “policy-making position.” The final rule is set to become effective 120 days after publication in the Federal Register, but it is being challenged in court, including by the U.S. Chamber of Commerce. For more information on the FTC’s final rule, see Fact Sheet on the FTC’s Noncompete Rule. For a full listing of key content covering restrictive covenant considerations, see Restrictive Covenants Resource Kit. For additional information on employee non-solicitation clauses in California, see Employment Contract Provision Protecting Against Solicitation of Employer's Employees by Former Employee, 4-70 California Employment Law § 70.34; Covenants Not to Compete, 1-20 CA Antitrust and Unfair Competition Law § 20.05; Provision Prohibiting Solicitation of Customers or Fellow Employees After Termination of Employment, 28-85 California Legal Forms--Transaction Guide § 85.472. For tracking of recent case law on non-solicitation agreements in California and other key federal, state, and local Labor & Employment legal developments, see Labor & Employment Key Legal Developments Tracker (Current).