Two Sides, One Coin: The Employer, The Employee, and The Non-Compete
A thorough understanding of your Non-Compete—especially its enforceability—will equip you to have an informed, transparent dialogue with all parties, says Bell Nunnally attorney Kristopher D. Hill.
July 06, 2022 at 02:25 PM
11 minute read
AnalysisOn One Side. An Employee accepted a position with a new employer and handed a resignation notice to Employee's (now) former Employer. The transition was a huge success. Within days, Employee implemented a strategy that will likely send profit margins through the roof and delivered a huge book of business. To support the boom, the new Employer hired dozens of the Employee's former colleagues. A week later, the hope and promise of new beginnings came to a screeching halt as a courier hand delivered a letter, popping with the words: "CEASE AND DESIST – VIOLATION OF NON-COMPETE AGREEMENT."
On the Other. An Employer received a resignation notice from a (now) former Employee. Within days, clients stopped taking Employer's calls, more employees resigned, and profit projections took a nose-dive. Confusion quickly turned to clarity: Employee's profile surfaced on the website of Employer's direct competitor. Employer pulled Employee's HR file and confirmed Employee signed a Non-Compete. Anxious to stop the bleeding, Employer immediately dispatched a cease-and-desist letter to Employee.
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