This letter may be used to demand that a current or former employee stop violating the terms of a restrictive covenant and to threaten legal action if they continue to engage in the prohibited activity.
An employer may use this certification with new employees in order to make clear to them that they cannot use confidential or proprietary information they acquired during their former employment. If an employer does not use this certification and an employee improperly uses the confidential information of the former employer and the new employer knew or should have known that the employee was using such information for the new employer's benefit, both the employee and the new employer can be subject to a legal action by the former employer/competitor.
Employers should require a prospective employee to sign this certification prior to hiring to ensure that the employee is not subject to a restrictive covenant with a current or former employer that would restrict the employee's ability to perform the job. Employers should require prospective hires to sign this certification because if the employer does not and it hires an employee who is subject to a restrictive covenant, the former employer may not only file an action against the employee, but against the new employer.