California Court Voids Nonsolicit Agreement with Recruiters & Defeats Trade Secret Claims

Dan Forman, Los Angeles Managing Partner and Chair of CDF's Chair of CDF's Unfair Competition & Trade Secret Practice Group, authored the article "California court voids nonsolicit agreement with recruiters and defeats trade secret claims," on December 17, 2018.  California Court of Appeal held that enforcing such an agreement signed by a recruiter-employee would constitute the enforcement of an illegal covenant not to compete under California law.

In this article, Dan warns employers that engaging recruiter-employees should be on alert that California Courts will not enforce standard nonsolicitation of employee agreements as such nonsolicitation agreements act to prevent former employee-recruiters from carrying out their chosen profession. Furthermore, while Loral Corp v. Moyes, long ago, upheld an injunction restraining a former executive from raiding his former employer’s employees based on a similar nonsolicit agreement, on November 1, 2018, the California Court of Appeal held that enforcing such an agreement signed by a recruiter-employee would constitute the enforcement of an illegal covenant not to compete under California law.  Click HERE to continue reading the article.

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