Question
How costly is it if I accidentally break a non-solicitation agreement?
I run a small business, and even one legal mistake could hit me hard. What kinds of costs — like damages or attorney fees — might I face if I violate a non-solicitation agreement without meaning to?
Answer
Breaking a non-solicitation agreement can lead to financial and legal consequences, even if it was accidental. Most cases are treated as breach-of-contract disputes.
You could face damages, attorney fees, court orders, and business disruption, depending on the contract and the harm caused.
What financial costs could apply?
If the other party shows they lost money because of the breach, they may seek:
- Compensatory damages for lost revenue or clients.
- Consequential damages for foreseeable extra losses.
- Liquidated damages if the contract sets a fixed amount.
Punitive damages are rare in contract cases and usually involve extreme or intentional behavior.
Some agreements also allow the winning party to recover attorney fees, meaning you could pay both sides' legal costs.
Could a court order me to stop?
Yes. A court may issue an injunction. This is an order requiring you to stop contacting certain clients or employees. Even without large damages, legal action can cause time loss, stress, and harm to business relationships or reputation.
The exact outcome depends on your contract's wording and the facts of the situation.
What to do next
- Review your non-solicitation clause carefully.
- Check for attorney fee or liquidated damages provisions.
- Stop any activity that may violate the agreement.
- Document what happened and how the contact occurred.
What to consider in your specific situation
Even though these general rules apply to most non-solicitation agreements, your situation may look different based on several factors.
Here are key things that can make your case unique:
- The exact language of your agreement, including any damages or attorney-fee clauses.
- Who you supposedly solicited—a client, employee, vendor, or someone else tied to the contract.
- Local and state laws, since rules on restrictions and enforceability vary widely.
- Your business size and industry, especially if losing clients or employees has a bigger impact.
- Past interactions between you and the other party, including warnings, emails, or prior disputes.
- The financial harm claimed, since bigger losses can drive more aggressive legal action.
Every situation is different, so consider getting more information through Rocket Copilot or through a Legal Pro so you can move forward with confidence.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
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Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.