Suing a Former Employer for Non Compete Abuse

Critically Assessing Your Options: Suing for Non-Compete Abuse in Massachusetts

Lawsuits stemming from non-compete agreements often kick off when a former employer takes legal action to prevent an employee from joining a competitor or launching their own venture. However, there are instances where employees have grounds to sue their former employers, particularly when the employer misrepresents the enforceability of the non-compete agreement.
In certain situations, these actions can escalate to the level of tortious interference or even a violation of Massachusetts' unfair business practices statute (Chapter 93A).

When Should You Consider Legal Action?

While it's possible to proactively initiate a lawsuit against your employer for non-compete abuse, it's not always the recommended course of action. Filing a suit guarantees that the non-compete issue will lead to litigation, whereas, in many cases, your former employer might not proceed with legal action despite their threats.
There are three scenarios where taking legal action might be a sensible choice:

New Employer Requires Release From Non Compete: Sometimes, you'll only realize that your non-compete is an issue after accepting a new job offer. Your new employer, upon discovering the non-compete agreement, may insist on a waiver or release to proceed with your employment. In such situations, your former employer typically has the upper hand.
Active Interference by Your Former Employer: If your former employer actively interferes with your new employment, such as directly contacting your new employer or business contacts, legal action may be warranted. However, whether their interference is wrongful depends on the enforceability of the non-compete and the accuracy of their representations.
Former Employer Threatening Suit: When both you and your former employer are based in Massachusetts, the advantage of being the first to initiate a lawsuit isn't significant. Yet, if your employer is located outside Massachusetts, filing first can ensure that the case is handled within the state.

In each of these scenarios, consulting with an attorney is crucial. Legal counsel can analyze the viability of your non-compete defenses, engage in negotiations with your former employer, and, if necessary, guide you through the process of filing a preemptive lawsuit.

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