What Does Non-Solicitation Agreement

Prompt is just a fancy word to ask for something. In the commercial sense, it is defined in terms of trying to get someone to do something. A non-solicitation agreement attempts to preserve a person`s promise not to remove employees or customers from a company. A non-solicitation agreement is a provision of an employment contract that prohibits an employee from advertising to an employer`s customers after leaving the company. Such an agreement should not be limited to customers only, but may prohibit an employee from asking other employees to also leave the employer`s business. You should also keep in mind that one of your future employees may have to deal with the restrictive agreements of another company. As an employer, you need to know if this is true and you need to abide by the terms of the contract. If you don`t, the former employer could sue you instead of the employee. That was exactly the issue before the court in Fidelity Brokerage Servs., LLC v. Callinan. There, a financial advisor left Fidelity to work for UBS. This employee had signed a non-solicitation agreement prohibiting him from referring directly or indirectly clients with whom he worked as an employee of Fidelity.

Upon his arrival at UBS, the employee created a written list of his Fidelity clients (from memory) and forwarded it to his new managers who had previously found the contact details of these clients. This employee then spent four months contacting these former customers by phone to provide them with their new contact information, unless the customer asked them to leave Fidelity. In this context, the employee started a comprehensive sales pitch on why UBS is better than Fidelity. According to the court, this was much more than a solicitation, although the customer expressed interest in learning more about the employee`s departure because (1) the employee personally contacted customers by phone, (2) he did so for a long period of time (four months), (3) the low interest that customers had to express to receive the sales pitch, ” and (4) the fact that the “sales pitch” was undoubtedly a complete invitation and an invitation to meetings. According to the court, this meant that these “customer calls were actually solicitations wrapped in the thin veneer of an ad,” as they were certainly not just meant to provide new contact information. .

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