Client: A mid-sized manufacturing company

Issue: A former employee, who had access to sensitive company information, was discovered to have joined a direct competitor in violation of a non-compete agreement. This posed a significant risk to the company’s competitive advantage and intellectual property.

The SALT Legal excels in employee, employer, labor, cyber, IP, new business, and corporate legal support.

TSL's Approach: 1. Immediate Legal Action:

TSL reviewed the employment contract and confirmed that the non-compete clause was enforceable under state law. They quickly filed a cease-and-desist letter to the former employee and the competitor, asserting that the employee was in violation of the non-compete agreement.

2. Contractual Enforcement:

TSL prepared to take further legal action by filing for an injunction to prevent the employee from working with the competitor. They gathered evidence demonstrating that the employee had direct access to proprietary information that, if disclosed, could harm the company’s market position.

3. Negotiation with the Competitor:

To avoid lengthy litigation, TSL initiated negotiations with the competitor's legal team. During discussions, TSL emphasized the legal risks associated with employing the former employee and presented a well-documented case that demonstrated how the non-compete clause was violated.

4. Settlement Agreement:

As a result of these negotiations, TSL secured a settlement agreement that included the former employee agreeing to leave the competitor and refrain from working in the industry for the duration specified in the original non-compete clause. Additionally, the competitor agreed to pay damages for the breach, covering the employer’s legal fees and potential business losses.

Outcome

TSL successfully enforced the non-compete agreement without a protracted court battle, thereby protecting the client’s business interests and confidential information. The swift action taken by TSL served as a deterrent to other employees considering similar breaches, reinforcing the employer’s stance on contractual obligations.