Many employment agreements contain non-solicitation clauses (also known as no-raid clauses), which may take two forms.
One form of non-solicitation clause prevents an employee from soliciting the employer’s clients for a period of time after the employee stops working for the employer. The other form prohibits the employee from soliciting the employer’s employees and inducing them to quit working for the employer. This type of clause is sometimes referred to as a “no-raid,” “non-recruitment,” or “no-hire” clause.
No-raid clauses are designed to protect an employer’s business interest in keeping its workforce intact even after the departure of key employees. Typically, the departing employee is forbidden from soliciting all current employees as well as any employee who resigned within six months of the employee’s departure date. If the employee does solicit these individuals, the employer may sue the employee for breach of contract.
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