Employee Nonsolicitation Terms Now Likely Void In California

By Dylan Wiseman and Alexandra Grayner (November 13, 2018, 2:38 PM EST) -- California law is well-settled that, subject to few exceptions, noncompete agreements are unenforceable. The law has been less clear, however, on the enforceability of employee nonsolicitation agreements. Past cases applied a "reasonableness standard" that considered several factors, resulting in inconsistent court decisions. Nevertheless, the uncertainty may be over. On Nov. 1, 2018, the California Court of Appeal for the Fourth Appellate District in AMN Healthcare Inc. v. Aya Healthcare Services Inc.[1] held that employee nonsolicitation agreements, even if reasonable and narrowly tailored, are void unless they fall within one of three statutory exceptions that pertain to the sale of a business.[2] As a practical matter, in the employment context, employee nonsolicitation agreements are now likely to be considered void....

Law360 is on it, so you are, too.

A Law360 subscription puts you at the center of fast-moving legal issues, trends and developments so you can act with speed and confidence. Over 200 articles are published daily across more than 60 topics, industries, practice areas and jurisdictions.


A Law360 subscription includes features such as

  • Daily newsletters
  • Expert analysis
  • Mobile app
  • Advanced search
  • Judge information
  • Real-time alerts
  • 450K+ searchable archived articles

And more!

Experience Law360 today with a free 7-day trial.

Start Free Trial

Already a subscriber? Click here to login

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!