ASA Central Network

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  • 1.  Non-Solicitation Clause in a Contract

    Posted 06-16-2021 13:07
    We have a situation where clients are increasingly wanting a non-solicitation clause in their contract. 
    In one industry that is small in my community, their corporate parents in other states are asking for this clause.  I do not see how I can continue business if I am agreeing to not solicit or recruit employees from their company and other similar companies.  

    My current client is proposing we will not solicit or initiate contact with any of  their employees. 

    1. I assume MOST contracts state the clause takes effect AFTER a hire and for a stated period of time such as 6 months after the hire.  (Would be terrible to have to lose potential candidates and not even have a hire /revenue from the contract, or only one hire in 3 years.)
    2. How are you dealing with this....you would be greatly harming your business if in a difficult recruiting environment if you have to weed out viable candidates if they work at this current client? 
    3. I can understand this more if your client is one of many clients and you can easily not recruit their people. But if your client is one of a handful of law firms, for example, and now you are limiting your ability to get candidates.
    4. Also, in this day and age each of us solicits candidates either by using our ATS system which may already have some of their employees as an active candidate, or via reaching out to candidates from different databases. The 'soliciting' bar would be very low.

    HELP. I don't see how anyone can survive by agreeing to forever hurt their business.

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    Renee Fulton CPA
    President
    Talis Group Inc.
    Louisville KY
    (502) 581-9861
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  • 2.  RE: Non-Solicitation Clause in a Contract

    2020 Staffing World Attendee
    Posted 06-17-2021 08:34
    Renee - I feel your pain. I've dealt with this as well. My suggestion is to offer a modification to the language that your staffing firm will not actively recruit from client's current employees but this is excluding any of the client's current employees whom come to you on their own.

    That's worked for me in the past few negotiations. I hope that might offer a reasonable option for your potential client.

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    ​Isaac Kelly, CHRA, CSP, CSC
    Vice President
    Augusta Staffing Associates
    P: 706.860.8909
    M: 706.951.7163
    isaac@augustastaffing.com
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  • 3.  RE: Non-Solicitation Clause in a Contract

    Posted 06-17-2021 09:27
    Renee I would have to agree with Isaac as well.  I can see not soliciting to current employees that are happily working.  However if they are current and THEY reach out to you, then that is of their own accord.

    Good Luck to you!

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    Stacy Casaz CSP,CSC
    Staffing Manager
    Neese Personnel
    Oklahoma City OK
    (405) 942-8551
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  • 4.  RE: Non-Solicitation Clause in a Contract

    Posted 06-17-2021 10:56
    It may be a bit old school but you are either a client or a source. Clients can ask for anything -  accepting that contract term is a business decision and it doesn't sound like it would be in the spirit of partnership.

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    Michael Santos
    Principal
    Workers Comp Access Inc.
    La Jolla CA
    (858) 229-1826
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