Ruling Nixes Broad "No-Hire Provisions"

Law360, New York (August 3, 2007, 12:00 AM EDT) -- A California appellate court held in a recent decision that a broad “no-hire” provision contained in a consulting agreement was unenforceable as a matter of law because it was an impermissible restraint on trade in violation of California Business and Professions Code Section 16600.

This decision impacts employers because some businesses include “no-hire” or “non-solicitation” provisions in their business service agreements and employment agreements.

Businesses, typically consultants or temporary agencies, frequently use “no-hire” provisions to protect their investment in their employees by preventing their clients from...
To view the full article, register now.

Law360 UK

UK Financial Services

Read Our Latest UK Legal News & Analysis

Financial Services Law360 UK and Insurance Law360 UK provide breaking news and in-depth analysis on U.K. and European Union regulation, enforcement, legislation, and litigation involving banks, investment firms, insurers, and more.