Is your non-solicitation agreement broader than you think?

On Behalf of | Apr 7, 2021 | Employment Law |

Leaving a job is a major decision. You may be giving up a certain level of pay or specific benefits in order to pursue a job that is a better fit for you, or you may be moving onto something with more financial incentives. Regardless of why you change jobs, you need to be aware that you might be subjected to restrictive covenants that affect how you work moving forward, at least for a certain period of time. If you’re unfamiliar with these restrictive covenants, then you might find yourself being accused of running afoul of them, which can be quite costly.

Non-solicitation agreements in Michigan

When you take a job, you might end up agreeing to a non-solicitation agreement. These agreements seek to prevent former employees from acting in a way that would draw business away from the employer. Traditionally, these agreements have been thought of as preventing former employees from approaching clients of their former employer, but these agreements might actually be more wide-ranging than you think.

Consider the facts at hand

There’s recent case law that seems to broaden the interpretation of non-solicitation agreements. There, clients left a business to pursue agreements with that business’s former employers, which led the employer to sue its former employees for breach of a non-solicitation agreement. The former employees tried to defend themselves by claiming that the customers reached out to them, so they therefore weren’t actively trying to recruit those clients away from their former employer.

The court, however, disagreed with the former employers and found that even though the clients reached out to them, their actions from that point moving forward clearly showed that they were trying to entice the consumers from their former employer and hoped to do so.

Know how the law applies to your case

If you’re assessing a non-solicitation agreement or are being accused of violating one, then you need to know the law and how to utilize it to your advantage. These can be complicated matters, of course, especially as the law continues to change. The best way to stay on top of the issue and ensure that you’re as fully protected as possible under the circumstances, consider contacting an attorney who is experienced in this area of the law.