Non-Competition vs. Non-Solicitation Covenants

A non-competition clause restrains the departing employee from conducting business with former clients and customers whereas a non-solicitation clause merely prohibits the departing employee from soliciting their business. Generally, the courts will not enforce a non-competition clause if a non-solicitation clause would adequately protect an employer’s interests. A non-solicitation clause – suitably restrained in temporal and spatial terms – is more likely to represent a reasonable balance of the competing interests than is a non-competition clause.

 H.L. Staebler Company Limited v. Allan