Legal Steps To Take When A Key Employee Violates A Non-Compete

Posted April 21, 2025 in Uncategorized

When one of your top performers jumps ship, taking their talent and potential contributions with them, it leaves a big hole in your enterprise. If you had that employee sign a non-compete agreement, then you may have some protection, but if they violate it by going to work for a direct competitor immediately after leaving your firm, that non-compete contract becomes a vital piece of evidence if you seek to recoup actual and future losses.

Enforcing a non-compete contract requires proactive strategies on your end, though. You need an experienced commercial litigation attorney who swiftly enforces the contract’s terms and protects your business interests.

What do you do next? Each situation is different, but our Littleton, CO commercial litigation lawyer’s strategies often include these key legal steps.

Careful Review of the Non-Compete Agreement

You can only enforce the terms that are present in your non-compete employment contract. Review its terms, or better yet, review them with your attorney. Can the contract be enforced in your state? How limited is the enforceability with respect to the geographic area, time limit, and industry?

Does it specifically cover the type of competitive activity the employee is engaging in? The agreement may cover the use of intellectual property but doesn’t contain any provisions relating to your client list. If the employee’s actions are damaging your business but aren’t specifically prohibited by the non-compete agreement, then a judge may find in their favor.

Gather Evidence of the Violation

If you take the matter to court or even arbitration (if you have an arbitration clause in the contract), you need more than just rumors, industry gossip, or suspicion. You need firm evidence proving the nature of the violation and the time of each occurrence.

This can include:

• Where the former employee is now working
• What role they’ve taken on
• Any evidence of client poaching or confidential information misuse
• Communications between them and your clients or current employees

Screenshots of texts or the employee’s socials, emails, LinkedIn status changes and other activity, and witness accounts can all support your claim. Depending on the nature of the violation, you may also collect statements from past customers stating that they are going with a different company or images and other proof of IP misuse.

Send a Cease-and-Desist Letter

Or better yet, have your commercial litigation lawyer draft and send one on your behalf. This may be sufficient to stop the former employee from further violating the non-compete agreement and settle the matter without going to court.

The letter should reference the specific non-compete language and explain the nature of the suspected breach. Next, it should demand that the recipient immediately comply with its terms and list the legal action that you will take should they refuse.

The C&D letter also creates a paper trail and establishes that the employee was formally notified of the violation.

Seek an Injunction

If your business is suffering immediate and ongoing harm, an injunction or a temporary restraining order (TRO) can cease the activity while you and your commercial litigation attorney regroup. It can also protect your business from further harm while the lawsuit proceeds.

File a Lawsuit (If Necessary)

If you sustained damages due to the violation of the non-compete agreement, you’re entitled to demand full compensation for your actual losses and potential future losses. The damage that your former employee caused could be ongoing, and you may be within your rights to demand considerable future damages. The impact of misappropriation of trade secrets or unfair competition may end up costing your business millions.

Legal Help Enforcing Non-Compete Agreements

Volpe Law LLC is ready to help with enforcing a competition agreement. Contact our firm today for a complimentary discovery call with our commercial litigation attorneys.