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Key employee asking me to remove non-solicitation clause from offer - red flag or reasonable?

Started by beyond_a_doubt · Apr 17, 2025 · 4 replies
Employment law varies by state. Non-compete and non-solicitation enforceability depends on jurisdiction and specific terms. Consult an employment attorney.
BA
beyond_a_doubt OP

Trying to hire a senior account manager for my digital marketing agency. Great candidate, 8 years experience, would be managing our top clients ($500K+ in annual billings).

Sent her the offer letter which includes our standard 12-month non-solicitation clause (can't solicit our clients or employees for 12 months after leaving). She came back and asked me to remove it entirely, saying "I don't sign non-solicits as a matter of principle."

Is this a red flag that she's planning to poach clients? Or is this becoming more common? Should I hold firm or negotiate?

AR
ArbitratorLiz_14

From a recruiting perspective, senior candidates increasingly refuse to sign non-solicits because:

  1. They've built relationships over their career and don't want to burn them
  2. They've seen these used as retaliation when employees leave
  3. They know most companies won't actually enforce them (too expensive)
  4. They want flexibility to start their own thing someday

The fact that she's being upfront about it is actually a good sign. People who plan to steal clients usually just sign and ignore it.

Could you narrow the scope instead of removing it entirely? Like 6 months instead of 12? Or only cover active clients, not prospects?

BA
beyond_a_doubt OP

That's a good point about being upfront. I've had employees sign and then ignore it when they left.

What if I proposed:

  • Remove the "prospective client" language
  • Reduce from 12 months to 6 months
  • Keep the client non-solicit but only for clients she directly managed
  • Keep the employee non-solicit at 12 months

And maybe add a $5K signing bonus as consideration?

NO
NotaryJane_4 Attorney

AgencyOwner_Brad's approach is smart. The signing bonus with clawback serves multiple purposes:

  • Provides the consideration required for enforceability in New York
  • Creates a liquidated damages amount (the clawback) that's easier to enforce than proving damages from solicitation
  • Shows good faith - you're giving her something valuable, not just restricting her

I'd also recommend adding a confidentiality provision (separate from non-solicit) that prohibits her from using your client lists, pricing, strategies, etc. Those are often more enforceable than non-solicits because they protect actual trade secrets.

One more thing: if clients contact HER (not the other way around), that's generally not solicitation. Make sure your agreement is clear on this.

NO
NotaryJane_4 Attorney

That's a reasonable proposal. Two quick additions to consider:

  1. Define "solicitation" - Make clear whether it means actual engagement/contract, or just contact/proposal. Big difference.
  2. Severance commitment - Consider offering 2 weeks severance if you terminate without cause. Gives her some security and strengthens enforceability of the restrictions.

Good luck! Sounds like you're handling this thoughtfully.