A non-solicitation clause restricts your ability to recruit employees or solicit clients/customers from a company after your relationship ends. These can impact your networking and business development.
“For a period of two (2) years following termination, Contractor shall not, directly or indirectly, solicit, recruit, or hire any employee of Company, or solicit or attempt to divert any customer, client, or business relationship of Company.”
For 2 years after you leave, you can't try to hire their employees or take their customers - even if those people reach out to you first. The 'indirectly' language means you can't have someone else do it for you either.
Covers situations where employees or clients approach you first
Broad definition of 'solicitation' that includes passive activities
Long restriction periods that limit career mobility
No geographic limitations making it overly broad
Applies even if you're terminated without cause
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A non-compete clause restricts your ability to work for competitors or start a competing business after leaving a company. These clauses can significantly impact your career mobility and earning potential.
A confidentiality clause (or NDA - Non-Disclosure Agreement) protects sensitive business information from being shared with third parties. These clauses are essential but can be overly broad or perpetual.
A termination clause defines how and when a contract can be ended by either party. Understanding these terms is crucial - they determine your ability to exit a bad situation and what happens when you do.