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Question

What contract can I use in California to stop client poaching?

If non-competes are banned, how can I keep employees or subcontractors from taking my clients?

Rocket copilot

Answer

In California, non-compete agreements are generally banned. However, you can still use other contracts to protect your clients. 
 

Common tools include non-solicitation clauses and Non-Disclosure Agreements (NDAs), especially when focused on protecting confidential information and trade secrets.

Can you use non-solicitation clauses in California?

Many businesses use non-solicitation language to prevent former employees or contractors from actively reaching out to clients after leaving.

These clauses work best when they:

  • Focus on stopping active solicitation.
  • Are narrow and clearly written.
  • Do not prevent someone from working in their field.

California law is strict, so overly broad language may not be enforced. Non-solicitation clauses may be unenforceable in California unless they are carefully limited to protecting trade secrets or confidential information.

How do NDAs help protect clients?

A Non-Disclosure Agreement can protect sensitive business information, such as client lists, pricing models, marketing plans and service methods.

If your client list qualifies as a trade secret, an NDA can help prevent someone from using that information to compete against you.

Courts are more likely to enforce agreements that protect legitimate business interests without restricting someone's right to work.

What to do next

  • Use a narrowly drafted non-solicitation clause.
  • Strengthen your NDAs to cover client information.
  • Limit access to client lists and sensitive data.
  • Make sure agreements focus on confidentiality, not employment bans.

What to consider in your specific situation

These general tools work for many businesses, but the right approach for you may depend on several details. Small differences in your setup can change what's enforceable or effective:

  • The type of relationship you have (employee vs. contractor).
  • The exact wording of your NDA or non-solicitation clause.
  • Whether your client list legally qualifies as a trade secret.
  • Local rules that apply to your industry or business type.
  • How much confidential information you share and how you protect it.
  • Prior contracts, emails, or understandings with your workers.

Every business is different, so getting help tailored to your situation can help you stay protected and confident moving forward. Consider getting personalized advice through Rocket Copilot or a Legal Pro.

Published on 04/06/2026Written by Rocket Lawyer editorial staffReviewed by Legal Pros

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

  1. 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.