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How non-solicitation agreements in business affect workers

How non-solicitation agreements in business affect workers

On Behalf of Hantzes & Associates | Sep 23, 2020 | Business Law |

It is not uncommon for businesses operating in the Washington, D.C., area to require managers, directors and other top-level executives to sign non-solicitation agreements. A person interested in purchasing a business entity may also require a non-solicitation agreement to guard against a seller leaving with employees and customers of the business.

In simplest terms, solicitation is the act of asking someone for something. In regards to employment law for workers, soliciting is requesting an employee to do something. The non-solicitation language asking for no tampering with employees or customers can merit its own document or become a provision of an independent contractor or employment agreement.

A restrictive covenant is a contract that must include the element of consideration. This element expresses the concept that all parties to a contract must provide something of value to another party. An agreement that includes something of value by only one party is a gift and not a contracted business agreement.

A non-solicitation agreement structured under a restrictive covenant involves no soliciting by one party in exchange for something of value from the party requesting the non-solicitation agreement. In many cases, the consideration provided by the other party is an amount of money that is perceived to be equal to the value of the non-solicitation agreement.

Other types of non-solicitation agreements include non-compete agreements and confidentiality agreements. All three of these methods seek to prevent an action from an employee or business partner and must be reasonable in terms of area, time and type of work for the agreement to become enforceable.

Business and employment law can be a complicated process to navigate without the help of a legal professional. Individuals with questions regarding this area of the law may find the answers they need by speaking with an attorney.

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