Q: What types of damages are available when a former employee breaches a restrictive covenant barring solicitation of his or her former employer’s customers?
A: While parties often focus on the possibility to enjoin a former employee from soliciting a company’s customers, it is possible to recoup lost profits as well, particularly where they are significant. For example, a Massachusetts federal court found a sales representative liable for over $1.6 million in damages for breaching a nonsolicitation clause that prohibited him from procuring business from his former employer’s customers.Continue Reading Court Awards Employer Over $1 Million for Former Employee’s Breach of Nonsolicitation Clause