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Employment issues can be tricky – and confusing. The right answer is usually a combination of federal, state and local requirements. Read over these real life situations and see if you would know how to respond.

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?

A:No.

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.

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Employment law can be tricky – and confusing.
The right answer is usually a combination of federal, state and local requirements. Read over these cases and see if you’d know how to respond in these real life situations.

LEARN MORE >>



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