Customer Non Solicitation Agreement California

In the unfair competition debate, the Court of Courtesy stated that a former worker had the right to compete with his former employer, including for the cases of those who had previously been clients of his former employer, provided that such competition was fair and legal and that it did not constitute unfair competition: „[a] former worker uses confidential information obtained from his former employer to compete with him and ask for the affairs of his former employer. employer. The employer`s clients are considered unfair competition. [Quote] (Temporary Courtesy Service, Inc. v. Camacho, supra, 222 Cal.App.3d, 1292, 272 Cal.Rptr. 352.) As a courtesy, the applicant, an acting agency, provided temporary workers to various companies. The accused, former employees of the agency, admitted to creating a competitive business and compiled a list of the agency`s main clients while employed by the Agency. The Agency has sued the defendants for unfair business practices and cease and desealing in respect of the creation of a competing agency. The court issued a referral order asking former employees to recruit agency clients and temporary workers.

However, the court also found that the agency`s client list and related information were unprotected work products, and therefore rejected an injunction requesting the use and disclosure of the information. In accordance with the prohibition on non-competition prohibitions, as set out in Section 16600, California law makes it clear that an agreement between an employer and an employee prohibiting the customer application is not applicable (unless it is directly related to the use of trade secrets) because it is considered a restriction of competition. However, an agreement prohibiting the request of other staff may be applicable as long as it includes reasonable time and geographic restrictions. Be careful, however, not to go beyond the „ad.“ An „announcement“ of a new job, which informs the former employer`s clients about the interesting competitive alternatives of the former employee`s new employer and invites them to apply, goes beyond the announcement of a new job and is an invitation.

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