Although California law generally prohibits non-competition agreements, some courts in a number of unpublished opinions have enforced non-solicitation clauses restricting former employees from pirating their former colleagues. A California appellate court, however, recently invalidated such a provision in a published opinion, calling into question an employer’s ability to rely upon such agreements.
In AMN Healthcare Inc. v. Aya Healthcare Services, AMN sought to enforce a non-solicitation provision against former employees and their new employer. The trial court ruled in favor of the individuals and corporate defendant Aya, enjoining AMN from enforcing a provision that prohibited the non-solicitation of employees.