The Four Ways ‘Non-Competes’ #FAIL in the Social Media Age

How friending, liking, connecting or Tweeting can come back to haunt you. 

By R. Peter Fontaine
NewGate Law

It is axiomatic that the only true assets of any accounting firm are its clients and its people.  These relationships are typically protected through a legal agreement between the firm and its people.  Known as restrictive covenants (or, colloquially, as “non-competes”), under these contracts former partners and employees are prohibited from soliciting or serving firm clients, and soliciting or hiring firm employees.

Restrictive covenants are becoming increasingly more significant in the accounting industry because of the growing mobility of and competition for a scarce workforce and partner and employee “fallout” following a merger. The ever expanding popularity of social media only contributes to the uncertainty surrounding the enforceability and effectiveness of post-employment restrictions.