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The first question is - should you? Sometimes, former employers send such letters out even though the former employee is doing nothing other than working for a competitor (i.e. is not trying to steal former customers, is not using confidential information of the former employer in his/her new job). In such cases, might you be better off simply ignoring the letter?
Sometimes, folks in these type situations decide to send back an incendiary response that serves to escalate things. You don't want to do that.
If you receive a cease and desist letter, it makes sense to contact a competent attorney experienced in such areas before sending a response.
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| Employment Agreements Often Contain Confidentiality, Non-Compete and Non-Solicit Covenants Although Generally Disfavored in Pennsylvania, Courts Will Enforce Them in Many Circumstances |
What Should I do If I Receive a Cease and Desist Letter About a Non-Compete Agreement in Pennsylvania?
If you have recently left a job and have a non-compete agreement, you may receive a cease and desist letter from your former employer or their lawyers.
We have written extensively on the the "do's and don'ts" where non-competes are concerned, and as has been emphasized, the number one thing that will "get you in trouble" is doing business with customers/clients of your former employer in your new endeavor. If you have done that, or plan on doing so, and you receive a cease and desist letter, it would be a good idea to contact an attorney right away. Simply stated, few (if any) companies will allow their former employees to take customers with them to a new endeavor without a fight.
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| The Number One Thing to Avoid - Doing Business With Your Former Employer's Customers |
How Do I Respond When I Get a Cease and Desist Letter Accusing Me of Breaching a Confidentiality Agreement in Pennsylvania?
If, on the other hand, you do not plan on accepting business from former clients/customers (and "accept" is the right word - you are not free from claims of unlawful solicitation just because the customer reaches out to you first), then the metric changes.
Here are some important questions to ask yourself in such a scenario:
·
Did I collect my former employer’s confidential
information before I left by making copies of it, putting it on a thumb drive
or sending it to myself via e-Mail?
·
Do I plan on using any of my former employer’s
business forms, client contacts, contract information, pricing schedules, etc.
in my new endeavor?
·
Do I know truly confidential information
(sensitive engineering processes, IT information, recipes, etc.) that would
give me a competitive advantage over my former employer if used in my new
enterprise?
·
Do I know truly confidential information
(sensitive engineering processes, IT information, recipes, etc.) that would undermine
my former employer’s good will or competitive
advantage if used in my new job?
·
Does my former employer have a documented history
of aggressively pursuing former employees who take new employment that is competitive?
If the answer to one or more of these questions is in the affirmative, you should consider seeking counsel at once, even if you are not in contact with its customers.
If You May be Violating a Non-Solicitation Covenant or Using Your Former Employer's Confidential information, Ignoring the Problem is the Wrong Way to Go
HERE ARE SOME OTHER ARTICLES YOU MAY FIND WORTHWHILE:
Are Non-Compete
Agreements Enforceable in Pennsylvania? How Can I Negotiate a
Non-Compete?
Non-Compete Agreements
- Legally Enforceable or Not, Negotiation is Often the Key
I Received a Cease and Desist Letter Attorneys for my Former Employer
There are some other key factors to consider if you receive a cease and desist letter concerning an employment agreement you signed containing restrictive covenants regarding confidentiality, non-competition and non-solicitation. For example:
·
Employees that quit jobs are more likely to be
sued than employees who were laid off or let go for alleged poor performance.
·
Employees who are fired under a “black cloud”
(dramatic insubordination, suspected of misappropriating information or of
planning to start a competitive business/join a competitive business) are more
likely to be sued.
·
The higher your rank with your former employer,
the greater peril you may face if you take a job with a competitor.
·
If you claimed you were not going to be working
for a competitor when you left, and then you went to work for a competitor, you
are more likely to get sued.
·
If you had substantial involvement with
clients/customers, you are more likely to get sued than if you worked in the
stockroom shelving boxes.
In addition, the greater the risk of losing business (i.e. clients/customers) the stronger the reaction from your former employer. Companies get very possessive about their client base....("If you ever come near my family again I'm going to kill you, do you understand?")
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| Non-Compete Litigation can be Expensive and is to be Avoided at all Cost! |
1)
ignore the letter;
2)
respond to the letter directly; or,
3)
have an attorney respond to the letter on your
behalf.
Consequently, it is probably always a good idea to contact counsel if you receive a cease and desist. These issues can often be sorted out - misconceptions can be cured, and legitimate problems negotiated where appropriate.
610-647-5027
Philadelphia Area Non-Compete Attorney Representing Employees
We are employment lawyers who represent employees in Pennsylvania.
We typically represent workers who need an employment lawyer
in Philadelphia County, Chester County, Delaware County, Montgomery County, Bucks County, Lancaster County, Berks County and Montgomery County.
Pennsylvania Cease and Desist Non-Solicitation Attorney Provides Free Telephone
Consultations (up to 15 Minutes in Duration)
If you are looking for an employment lawyer who practices in the area of non-compete law, and
live in Malvern, Paoli, Downingtown, Bryn Mawr, Newtown Square, Northeast Philadelphia, Center City, King of Prussia, Glenside,
Doylestown, Radnor, Exton, Philadelphia, West Chester,
Skippack, Langhorne, Haverford, Nether Providence, Broomall, Media,
Reading or any of their surrounding towns, feel free to send us an
e-mail via our Contact Form or give us a call at 610-647-5027. We are always glad to spend some time with people
via a free telephone consultation.
Need an Experienced Lawyer Who is Experienced in Handling Non-Compete Disputes in Pennsylvania?
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