Employment litigation often begins with an employee’s dissatisfaction, and companies often have proactive measures in place to limit the risk of litigation in such scenarios. Workers may file lawsuits alleging harassment or discrimination. They may claim that they experienced wage violations or that an employer somehow violated their employment contract or labor laws.
Companies often need help responding to and defending against employment lawsuits brought by workers. However, some employment-related litigation begins with the employer rather than the worker.
If a company has reason to believe that a former employee has violated a restrictive covenant after leaving their job, legal action may be the most effective means of enforcing that agreement.
Why litigation could be necessary
Restrictive covenants are additions to contracts that prohibit certain behavior. Noncompete and nondisclosure agreements are arguably the most common restrictive covenants added to employment contracts.
If a business discovers that a worker who is still bound by a restrictive covenant has taken a job with a direct competitor or released non-public information, legal action can help prevent additional damage to the company, enforce contract terms or compensate the business for any harm caused. Organizations that believe a former employee may have violated a restrictive covenant often need help assessing the agreement and documenting the circumstances to effectively pursue justice in civil court.
Initiating employment litigation to enforce a valid restrictive covenant after a provable breach is sometimes the best option for companies dealing with unfair competition or the release of non-public information. An in-depth conversation with a business litigation lawyer can help organizational leaders evaluate their options and protect their company from the misconduct of a former worker.