California Employee With Restrictive Covenant Governed By Texas Law. Which Applies?
Location: California
I worked for Company B in California and was laid off June 2025. My employment agreement has a 24-month employee non-solicitation/no-hire clause that restricts me from recruiting, soliciting, or identifying certain Company B employees for hire. It also says the restriction applies regardless of who initiated contact.
The restrictive covenant says Texas law applies and disputes must be brought in Texas. (Company B headquarters were in Texas). However, my separate separation agreement says California law governs, while also stating that I remain bound by the restrictive covenant.
I now work for Company A in California. A few Company B former coworkers who are also in California approached me asking for a referral.
My questions:
- Which state's law would determine whether the non-solicitation provision is enforceable, California or Texas?
- Does the California choice-of-law provision in the separation agreement override or affect the Texas provision in the restrictive covenant?
- Could making a referral violate the restriction even if the former coworker contacted me first?
The 24-month restriction runs through June 2027. I’m trying to understand my legal risk before making any referrals.
I really enjoyed working with these former coworkers and know that Company A would be a huge step up in their career/lifestyle but don't want to get into trouble. Thank you for your help in advance!
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