Q: May you enter into a “no hire” agreement?
In a rare display of good sportsmanship (and patent protection), you and a competitor CEO make a verbal agreement not to actively recruit each other’s talent.
Are no-hire agreements enforceable?
Knowing that your competition will not lure away your top people may help you sleep at night, but California’s Business & Professions Code states that any contract that restrains someone from engaging in a lawful business, trade or profession of any kind is void. In general, the courts take a dim view of agreements that restrain a person’s ability to market their services and ply their trade. It is best to consult legal counsel on these issues.
Every employer wants to believe they’ve got a good team they can trust. And in most cases, they have.
Unfortunately, even good people sometimes stray from company expectations. Here are some of the issues we were asked to investigate.