A Connecticut company brought suit against a former employee alleging violations of a non-compete agreement and the Connecticut Uniform Trade Secrets Act, tortious interference with business relationships and breach of contract, among others.
One interesting part of the case was that the employee’s non-compete agreement lacked a provision about sharing on social media, which allowed the former employee to use LinkedIn to announce to all of his connections, including the company’s clients, that he was joining a competitor. Even though the former employee could not directly solicit the company’s clients, the lack of a provision about social media led the judge to determine that the company did not have a good faith basis for the lawsuit, because the facts did not support its claims, and the LinkedIn announcement was allowed. For more details about this case, click here.
This case illustrates that companies need to analyze the details when drafting non-compete agreements and protecting trade secrets. Here, the gaps in protection allowed a former employee to act in ways that the company did not intend to allow, but the company’s hands were tied in litigation. Worse yet, the company may have to pay the former employee’s attorney’s fees for initiating the lawsuit.