Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

The California Court of Appeals in VL Systems, Inc. v. Unisen, Inc. on June 25, 2007 found that the no-hire clause in a consulting contract between VL Systems and Star Trac Strength restricted David Rohnow’s ability to seek employment.  David Rohnow was an employee of VL Systems, but not at the time of the performance of the consulting contract.

Most companies have non-solicitation and non-hire provisions in their agreements where companies agree not to hire or solicit for employment the employees of the other company. 

Narrow no-hire clauses that are (1) applicable only to employees that worked on the contract; or, (2) restricted the contracting party from actively soliciting employees might be enforceable.