An Underused Arrow in the GC’s Quiver: Cease-and-Desist Letters to Former Employees

When former employees engage in conduct that threatens a company’s workforce, confidential information, reputation, or customer relationships, litigation is not always the first or best response. In a recent article for Today’s General Counsel, Woods Rogers Labor & Employment Principals Anne Bibeau and Leah Stiegler examine how strategically crafted cease-and-desist letters can help employers address harmful post-employment conduct before disputes escalate. 

While cease-and-desist letters are commonly associated with intellectual property disputes, Leah and Anne explain that they can be equally effective in employment-related matters involving solicitation of employees, misuse of confidential information, defamation, harassment, threats against current employees, and violations of restrictive covenants. They emphasize that employers should first ensure they have a solid legal basis before sending a letter and carefully consider both the substance of their demands and the potential reputational implications if the letter becomes public. 

“The C&D letter, deployed thoughtfully and grounded in sound legal analysis, remains one of the most cost-effective tools available to companies dealing with problematic former employees,” Leah and Anne write. 

The article also cautions employers against overreaching. Leah and Anne discuss recent regulatory scrutiny of companies that have used cease-and-desist letters to enforce questionable restrictive covenants, noting that employers should confirm not only that an agreement exists, but that it is likely enforceable under applicable law before taking action. 

Read the full article in Today's General Counsel.