Subject: Warning Notice for Noncompliance with Noncom petition Agreement Dear [Employee's Name], We hope this letter finds you in good health and high spirits. We are writing to address a matter of significant importance regarding your recent actions in violation of the noncom petition agreement that you willingly signed when joining our esteemed organization. As per our records and the contract signed on [Date], it is evident that you have breached several critical provisions of the noncom petition agreement, specifically outlined under Section [mention relevant section(s)]. These provisions were set forth to protect our company's confidential information, trade secrets, valued clients, and investments made to nurture and establish our business within the New York market. Upon thorough investigation, it has come to our attention that you have been engaged in activities that directly contravene the terms stipulated in the noncom petition agreement. These activities include, but are not limited to, providing services or consultation to a competing entity within New York City, which directly undermines our business interests and goes against the spirit of the agreement. We would like to remind you of the far-reaching consequences that violating the noncom petition agreement can entail. Legal implications may include financial penalties through compensation claims for damages incurred, injunctions to prevent further violations or even the termination of your employment contract. As an employee, it is crucial for you to understand the severity of breaching the noncom petition agreement. Therefore, we request that you immediately cease any activity that contravenes the agreement, whether it be directly or indirectly. For clarity, we expect you to refrain from engaging with our competitors in any capacity that could potentially harm our business interests. We strongly urge you to take this matter seriously and rectify your actions within [specified time frame]. Failure to comply may lead to further legal action being taken against you, which would inevitably tarnish your professional reputation. We encourage you to seek legal advice should you require clarification on any of the terms and conditions mentioned in the noncom petition agreement. It is in your best interest to consult with an attorney who specializes in labor law to protect your rights and gain insights into the potential consequences arising from this breach. We emphasize the importance of maintaining the trust and confidence we placed in you as an employee of our organization. We sincerely hope that you will cease all activities that violate the noncom petition agreement and honor your commitment to the company and its interests. Please acknowledge receipt of this letter promptly, along with a written statement of your intentions moving forward. Thank you for your immediate attention to this matter. Sincerely, [Your Name] [Your Position/Title] [Company Name]
New York Sample Letter for Violation of Noncompetition Agreement
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FAQ
Generally, upon finding portions of a non-compete unreasonable, a court may invalidate the agreement entirely or may enforce the agreement for a shorter time or in a smaller area.
On June 20, 2023, the New York State Assembly passed A1278B, amending the state's current labor law to prohibit non-compete agreements for workers. The bill comes in the wake of the Federal Trade Commission's proposal for a nationwide ban on non-competes.
A breach of contract cease and desist letter is sent to a party that has entered into an agreement and has violated the terms resulting in damages to the claimant. This letter is commonly used when the defendant is in violation of an employment or non-compete agreement.
A key provision of the New York bill is its private right of action, which enables workers to sue their employers within two years of signing or learning of their non-compete, the termination of their employment or contractual relationship, or the date their employer acts to enforce the agreement, whichever is latest.
I am writing this letter and desperately requesting a release from this non-compete restraint. I am willing to offer payment or other valuable consideration in exchange for this request. Please contact me at any time to further discuss this matter at [TELEPHONE] or [E-MAIL].
In New York, courts disfavor non-compete agreements and enforce them only when necessary. Here are the main factors courts consider: non competes are enforced only when necessary to protect legitimate business interests such as trade secrets or special skills acquired during employment.
How do employers enforce non-competes? An employer can file a lawsuit and ask a court to enforce the non-compete and require the employee to follow its terms. Some employers may send a letter to the employee or to the employee's new employer threatening to file a lawsuit to discourage employees from taking a new job.
In certain circumstances, it is possible to find non-compete contract loopholes that may void the contract. For example, if you can prove that you never signed the contract, or if you can prove the contract is against the public interest, you may be able to void the agreement.