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

Q: My company is headquartered in Massachusetts. Does the new Massachusetts law on non-competes change how I structure non-compete agreements with employees?

A: Massachusetts recently enacted a new law outlining the requirements for valid employee non-competition agreements.  The law will go into effect for non-competition agreements entered into on October 1, 2018 and later.  Agreements signed prior to the new law will remain valid.
Continue Reading Massachusetts Employers Take Heed: New Non-Compete Law Adds Important New Requirements and Prohibitions

Q: A former employee has invited some of her former co-workers and clients to connect on LinkedIn. Is this a violation of her non-solicitation agreement with our company?

A: It depends. In general, a generic invitation to connect will not be viewed as a violation of a non-solicitation agreement.  However, if an invitation is accompanied by a personalized message or other targeted communication, it likely will be viewed as a violation.
Continue Reading LinkedIn Activity May Violate Non-Solicitation Agreements