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ARTICLE · 04 AUGUST 2016

You Cannot Create A Restrictive Covenant Out Of Thin Air

I recently read a lengthy, and I have to admit, well-crafted letter by one employer (who I will call Company A) accusing a former executive (Mr. B) of violating every conceivable restriction relating to recruiting employees...

United StatesEmployment and HR

I recently read a lengthy, and I have to admit, well-crafted letter by one employer (who I will call Company A) accusing a former executive (Mr. B) of violating every conceivable restriction relating to recruiting employees from Company A. Mr. B had left Company A and remained in touch with his old colleagues. In fact, in his former life Mr. B had recruited many of them to work for Company A. Now Company A's counsel accused Mr. B of unspecified violations of law because he had specialized knowledge of the employees' compensation, capabilities, career interests and ambitions, and knew the impact on Company A if the employees – one or all – left to accept employment with the company where Mr. B now worked. The letter was so well crafted that upon first glance it appeared both Mr. B and his new company were deep in trouble.

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