Godfrey & Kahn Updates

Protecting clients and competitive intelligence during key employee departures

After the beginning of the new calendar year, it’s not uncommon to see employees change jobs. When a key employee resigns, employers must take immediate, meaningful action to enforce non-solicit, non-compete and confidentiality agreements to protect their clients and competitive intelligence. Collaborating with legal counsel early in the enforcement process can save time and money.

Time is of the essence in these situations. Here are eight immediate steps an employer facing imminent risk should take:

1. Demand adherence to restrictive covenants in writing
2. Request an exit interview
3. Halt the destruction of information and property
4. Prepare remaining employees to ask about violations
5. Protect intellectual property and intangible assets
6. Track losses
7. Consider an e-forensic investigation
8. Explore litigation options

Want to learn more or find yourself in this situation? Read the full article, or contact a member of our Non-Competition & Trade Secrets, Labor, Employment & immigration, or Intellectual Property Practice Groups.