A California Court of Appeal on Thursday affirmed a trial court's ruling that nonsolicitation agreements signed by nurse recruiters working for AMN Healthcare (NYSE: AMN) violated state law by limiting the recruiting work they could do for up to 18 months.

The lawsuit was first filed in 2015 in San Diego County, when AMN sued four of its former recruiters who left to join Aya Healthcare. In addition, Aya was included in the lawsuit where AMN claimed the recruiters breached their nonsolicitation agreements and misappropriated trade secrets.

A court ruled last year that AMN’s confidential nondisclosure agreement was unenforceable under California law. The court also prohibited AMN from enforcing employment agreements in California that restrict former employees from soliciting other employees of AMN.

AMN ranks as the largest US healthcare staffing provider; Aya is the fifth-largest provider, according to Staffing Industry Analysts’ research. Both are based in San Diego, Calif.

The National Law Review reported the court’s decision could have diminished, or even eliminated, the “small bit of daylight” that exists for nonsolicitation agreements.

AMN Healthcare will comply with the Court’s decision, the company said in a statement provided to SIA. “The decision does not affect the success of AMN Healthcare or how we deliver value in accordance with the highest ethical standards for our clients, our healthcare professionals, and our team members every day,” AMN’s statement said.

A separate anti-trust lawsuit against AMN filed by Aya in February 2017 is ongoing.