Nonsolicitation agreement - sustany/dvg GitHub Wiki

A nonsolicitation agreement is a type of restrictive covenant that restricts former employees either from soliciting clients or employees from their former employer.� Nonsolicitation provisions are often found within business contracts or may constitute separate agreements.�

The enforceability of nonsolicitation agreements varies by state. �For example, the United States Court of Appeals for the Fifth Circuit noted in a recent case: �Restrictive covenants are unfavored in Louisiana and are narrowly and strictly construed.�� Section 23:921(A)(1) of the Louisiana Revised Statutes voids any contract provision in which �anyone is restrained from exercising a lawful profession, trade, or business of any kind," unless the provision meets a statutory provision. �An example of a statutory exception can be found in Section 23:921(C): �[An] employee may agree with his employer to refrain from carrying on or engaging in a business similar to that of the employer and/or from soliciting customers of the employer within a specified parish or parishes, municipality or municipalities, or parts thereof, so long as the employer carries on a like business therein, not to exceed a period of two years from termination of employment.�

Arkansas enforces nonsolicitation agreements more generally.� Section 4-75-101(a) of the Arkansas Code states that such a covenant is enforceable as long as �[t]he employer has a protectable business interest; and � [t]he covenant not to compete agreement is limited with respect to time and scope in a manner that is not greater than necessary to defend the protectable business interest of the employer.�