Cease and Desist Letter
(Post-employment Restrictions) (Former Employer to New Employer)

Summary

This template is a cease and desist letter to a former employee's new employer when former employer suspects that the former employee may be violating their post-employment restrictions. This template includes practical guidance, drafting notes, and alternate clauses. IMPORTANT NOTE: On April 23, 2024, the FTC issued its final rule prohibiting new non-compete agreements with all workers. The rule provides that existing non-compete agreements with senior executives remain in force, and existing non-competes with all other workers are not enforceable. The final rule was set to become effective on September 4, 2024. However, on August 20, 2024, the U.S. District Court for the Northern District of Texas set aside the FTC rule, preventing the rule from taking effect. See Ryan LLC v. FTC, 2024 U.S. Dist. LEXIS 148488 (N.D. Tex. Aug. 20, 2024). While the FTC appealed the Ryan decision to the Fifth Circuit, as of March 15, 2025, the appeal had been stayed 120-days at the request of the FTC. Upon the commencement of the second Trump term, however, it is unclear whether the federal government will continue to pursue the defense of the FTC's non-compete rule or ultimately rescind it. Therefore, practitioners in this area should continue to keep abreast of the status of the FTC Rule following the lifting of the stays. This letter notifies or reminds the new employer of the former employee's contractual obligations, puts the new employer on notice of a potential violation, and may serve as evidence in litigation. For a full listing of key content covering restrictive covenant considerations, see Restrictive Covenants Resource Kit. For resources on employment litigation, see Employment Litigation Resource Kit. For a cease and desist letter to a former employee, see Cease and Desist Letter (Post-employment Restrictions) (Employer to Former Employee).