A typical non-invitation agreement between a company and an employee would imply that, as the above decisions show, excessive provisions are unlikely to be respected in both the reflection contracts and the employer-employee agreements. Employers who wish to accept non-appellant agreements should strive to maintain them in their scale and scope. To simplify, the tighter the ban, the more likely it is to be maintained. The application of Section 16600 for non-compliance with provisions in enterprise-to-business agreements could have a significant impact on all California businesses and businesses operating in California. According to Biogen, for example, such a judgment would be contrary to the rule of motivation in the federal context for cartels and abuse of dominance and could jeopardize any joint venture, a lease agreement, a sales contract or a licensing agreement, as well as other widespread commercial agreements in which a company voluntarily limits the scope of its activities geographically. , by sector or by any other means. However, Loral Corp. was questioned by AMN Healthcare, Inc. v. Aya Healthcare Services, Inc., 28 Cal.App.5th 923 (2018), in which the Court of Appeal revoked a non-formal notice agreement for employees, which provided for a 12-month ban for a recruitment agent who joined the company and left a competitor. The court justified this decision by the fact that the non-invitation clause, as it applied to this particular worker – whose livelihood depended on his ability to hire others on behalf of his current employer – was contrary to Section 16600, as it «could limit the amount of compensation that a recruiter would receive with his new agency.» While the AMN Healthcare case does not contravene Loral Corp., he noted that Section 16600 embodied California`s strong public interest in preventing trade restrictions and did not allow for a «limited exception» that other jurisdictions could recognize. With AMN Healthcare, the possibility of imposing non-demand clauses for employees is uncertain.
Solicitation is just a chic word to ask for something. In the commercial sense, it is defined in the attempt to get someone to do something. A non-invitation agreement attempts to obtain a person`s promise not to divert employees or customers from a business. Before employers panic and conclude that all non-demand agreements for California workers are now null and fore, it is important to remember that such agreements should still be applicable as long as they are adequately adapted and do not restrict the ability of workers to practice their profession. Had the subject not been in the employee recruitment case, the outcome of the case would have been different. This is still an outstanding issue that needs to be resolved in the future. It is therefore preferable to consult legal advisors who have the nuances of California law before preparing employment contracts. California companies that want to discourage their employees from working for a competitor or starting their own competing business rightly want to include competitive contracts in their personnel contracts.