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Simple English definitions for legal terms
nonsolicitation agreement
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A quick definition of nonsolicitation agreement:
A nonsolicitation agreement is a type of contract that stops former employees from trying to get clients or workers from their old job. It's usually part of a bigger contract or a separate agreement. Some states have different rules about how enforceable these agreements are. In Louisiana, they're not very popular and have to follow strict rules. In Arkansas, they're more accepted as long as they don't last too long and only protect the employer's business interests.
A more thorough explanation:
A nonsolicitation agreement is a type of contract that restricts former employees from soliciting clients or employees from their previous employer. This agreement is often included in business contracts or may be a separate agreement. The enforceability of nonsolicitation agreements varies by state.
Louisiana: In Louisiana, restrictive covenants are not favored and are narrowly construed. Section 23:921(A)(1) of the Louisiana Revised Statutes voids any contract provision that restrains anyone from exercising a lawful profession, trade, or business of any kind unless it meets a statutory provision. An example of a statutory exception can be found in Section 23:921(C), which allows an employee to agree with their employer to refrain from carrying on a similar business or soliciting customers within a specified area for up to two years after termination of employment.
Arkansas: In Arkansas, nonsolicitation agreements are generally enforceable as long as the employer has a protectable business interest, and the agreement is limited in time and scope to defend that interest. Section 4-75-101(a) of the Arkansas Code outlines these requirements.
These examples illustrate how the enforceability of nonsolicitation agreements can vary by state and the specific requirements that must be met for them to be enforceable.