1. Former employees are reminded of their post-employment obligations through a letter after their separation, whether stand-alone or part of a more comprehensive separation letter.
2. Look for “smoking gun” evidence of potential breach, such as analyzing former employee’s work email and computer for any signs of taking confidential information. – No new company was found under the name of the former employee or their spouse in public corporate records.
– The former employee’s LinkedIn and Facebook profiles do not indicate the formation of a new company.
– Trusted clients have not reported being contacted by the former employee.
– The non-compete agreement was signed by the former employee and is supported by legitimate business interests.
– There were no mergers or sales of the business after the employee was hired, so the non-compete agreement remains valid.
– There are no known employment law violations that would weaken the enforceability of the non-compete agreement. 1. Unpaid wages, misclassified employment, and violations of the Fair Labor Standards Act are the most common alleged employment law violations.
2. A cease and desist letter should be sent to the former employee after previous steps have been taken, including reminding them of post-employment obligations and requesting a written confirmation of compliance.
3. If there is no response or an inadequate response to the first cease and desist letter, a second cease and desist letter can be sent with a draft lawsuit attached to get the attention of the former employee.
4. Pursuing an immediate injunction by filing a lawsuit and asking the court to issue an injunction to prevent violations of the non-compete or non-solicit while the lawsuit is pending is recommended, especially when there is evidence of irreparable harm. – Waiting too long to seek an injunction for a non-compete lawsuit may make it too late to stop the former employee from competing during the lawsuit.
– Setting realistic expectations for what a “win” looks like in a non-compete lawsuit is important, as courts may not enforce overly broad non-compete agreements.
– It’s important to analyze the likely enforceability of a non-compete agreement and consider negotiating a settlement rather than continuing litigation. – Cantrell Astbury Kranz, P.A. is a litigation boutique that focuses on non-compete and unfair competition disputes, employment law, and business disputes in Florida and Georgia.
– They handle business disputes, breach of contract, partnership disputes, franchisor and franchisee issues, securities and FINRA matters, defamation, libel, and slander cases.
– The firm also handles sexual harassment, non-compete and employee mobility issues, unpaid commissions and bonuses, discrimination, harassment, and retaliation claims, as well as Family and Medical Leave Act and executive compensation matters.
– They are a trial law firm with practice groups in serious personal injury, commercial litigation, and employment law.
Non-Compete Disputes Part II: Best Practices for Enforcing Non-Compete Agreements
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