Go Hire: Hiring from Your Competitors and Minimizing Risk

Companies want to hire the best and the brightest. Hiring from competitors is fair game today, but if the candidate has signed a restrictive covenant agreement, the hiring company also wants to minimize the risk of litigation.

Make It Work

Our first step is to review the candidate’s agreement and determine whether the covenant is enforceable. We look for provisions that are problematic and those that may be workable and negotiable. We assess the risk of litigation against the potential rewards from the hire. We counsel on the mechanics of the hire, advising on how the candidate’s transition should unfold, including how the hire should behave, how to navigate the inevitable exit interview, and what to say or disclose to the former employer. We investigate, analyze, and strategize to fully inform the client’s decision, not dictate it.

Find a Solution that Addresses All Internal Interests

The candidate’s hire is the client’s goal; however, competing internal concerns often exist, like the concerns of general management and human resources. Our goal is to empower clients to move forward, not become unraveled by disparate views. We talk with personnel, hear their concerns, and create solutions that satisfy across the board.

Consider Pre-Litigation Settlement

We present viable settlement options to the client, including representations and warranties, limited “no hire” agreements, and non-solicitation agreements for certain customers or employees, and negotiate pre-litigation resolutions.

Defend against Competitor’s Claims

Our trial lawyers are powerful advocates in state and federal courts, arbitration proceedings, and mediations throughout the country. They represent clients in all claims resulting from hiring from a competitor, including:

  • Tortious interference with a contract
  • Inducing breach of a fiduciary duty
  • Unfair competition
  • Misappropriation of trade secrets

We Know the Law

  • RF’s own state-by-state surveys covering the law of restrictive covenant enforcement
  • RF’s own state-by-state surveys covering trade secrets legislation
  • Defend Trade Secrets Act of 2016
  • Economic Espionage Act
  • Computer Fraud and Abuse Act
  • Gramm-Leach-Bliley
  • State business tort statutes
  • State theft of trade secrets statutes
  • Uniform Trade Secret Act
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