Non-Compete Violation Investigations

When a former employee takes your trade secrets to another business—or starts their own organization with a similar business model—the effect can be devastating to your company. There are many reasons why a former employee might do this, principally due to dissatisfaction under their former employer, and the desire to start their own business with little industry knowledge. By the time the former employer learns of the non-compete violation, the damage has been done.

Not every company fears a former employee will violate their non-compete agreement, and some companies do not see the need for a non-compete agreement at all. At worst, the consequences of a non-compete violation can end with a business closing and a former employer in serious debt. Even if a company is able to quash a non-compete violation in court, the cost to the company in legal fees can be astronomical, especially for smaller businesses. That’s why it’s important for owners and executives to be preemptive and proactive when it comes to potential violators. Luckily, a private investigator can help at all stages of a non-compete violation investigation.

When you need to find proof that a former employee has violated their non-compete agreement, you need an investigator who will turn over every rock. Diligent fact-finding is the cornerstone of any private investigator’s expertise. Private investigators can review a former employee’s non-compete agreement for exact specifications and begin a fact-finding mission that determines whether or not a violation has occurred. They can implement many of the strategies aforementioned: surveillance, interviewing witnesses, documenting evidence.

Should legal action arise as the result of a non-compete violation investigation, Lauth’s private investigators can also assist in the next phases of the process, namely as independent witness testimony. Cases involving a violation of a non-compete agreement, the narrative often has a divisive they-said, they-said narrative. This is where the independence of a private investigator becomes invaluable once more. When it comes down to the word of a former employer versus a former employee, the courts can find the testimony of an individual with no ties to either party more compelling. Any private investigator worth their salt is loyal only to the truth. True, they are paid for their services, typically by the former employer, but the conclusion of the investigation should always be based on fact, not fiction. Their independence coupled with their expertise and resume make them spectacular witnesses in any subsequent litigation.

When non-compete violations are at their ugliest, not only do violators seek to siphon off business from their former employer, but they can also play dirty by exposing this information publicly. Another method involves deliberately spreading lies about the competition in order to drive business towards the former employee’s company. That’s known as slander and it’s legally actionable. Documenting the perpetuation of these lies and proving they are in fact false are crucial in these cases. Private investigators can conduct cyber investigations to track down the users behind profiles that post false negative reviews, follow rumors back to their roots, and document malicious behavior.

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