Q: Does Colorado have a law prohibiting an employer from requiring employees to sign a restrictive covenant agreement?

A: Yes. On August 10, a new Colorado law took effect that voids noncompete and customer nonsolicitation covenants with certain Colorado employees, depending on their compensation level. The new law places significant penalties upon noncompliant employers and will void any provision that violates the law.Continue Reading Colorado Implements New Restrictive Covenant Laws

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