Former employee violating restrictive covenant

April 25, 2011

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Question

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Ken,

I receive your emails and thanks for the service. I do have a legal question regarding a sales person that left us and has called our customer about future business while having signed an agreement not to do so for a year. Can you respond or do you want to email me? IÂ’ll gladly pay for your advice.

Thanks,

Wylie

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Answer

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I am happy to address general legal questions here. I haven't seen your signed agreement, but if your employee agreed to a restrictive covenant then it is likely to be enforced to the extent nexessary to protect your business and not unnecessarily inhibit the employee from making a living. Poaching your customers is not something that the courts should stand for, and the restriction should hold up. There may be jurisdictions where restrictive covenants are not enforced and you would have to check local law.

A restrictive covenant prohibiting competition belongs in the Employment Contract, and unless prohibited by local law you should have an Employment Contract with every employee.