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Can an acquiring company infringe on my right to seek employment from the prior owner of the acquired company.

I worked for company A that got bought out by company B. I got laid off but was offered a job by the owner of company A who started a new company C. However, the acquisition contract states that he may not solicit ex employees for employment at company C. I lost my job and this is the only work I can find right now. Is company B infringing on my right to get employment?

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Attorney answers (3)

Reputation Level 15
No, Company B is not infringing on your rights. Company B is asserting its rights under the contract for the acquisition of Company A. Whether the contractual provision you describe restricting the solicitation of the acquired company's ex-employees is enforceable is another question, but it is not a question you would have standing to raise since you are not a party to the contract. You should consult with an attorney to discuss the particulars of your matter and for any specific legal advice.
4 people marked this answer as good

Reputation Level 20
The owner of Company C cannot solicit employees of Company B. However, once you got laid off you could be eligible for hiring by Company C. It depends upon the non-solicitation language in the buyout agreement. Moreover, while C cannot solicit you for a job, you can probably solicit C for employment. If C is advertising for employees you can certainly apply.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change.
4 people marked this answer as good

Reputation Level 9
I disagree with the answers given previously. California law states that one cannot be prevented from pursuing one's business or profession. This has been interpreted by at least one California court as stating that companies have a right to solicit employees from other companies. The courts are split, however, and the answer is not completely clear, but I think the better answer is that Company C cannot be prevented from soliciting A's employees, and almost certainly not A's former employees.

What is certain is that you have the right to apply to Company C, irrespective of Company C's efforts to solicit you. If you are the one making the overture to Company C, then Company A has no legal right to prevent it, and in fact may be engaging in an unfair business practice if it were to do so.

Good luck with your legal matter.
2 people marked this answer as good

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