Use of Cease-And-Desist Letters 

Suppose a former employee following termination makes threatening, harassing, defamatory or otherwise inappropriate statements or violates policies on non-competition or confidentiality.  What can the former employer do to stop or limit such occurrences?

Obviously, one approach is to sue the former employee.  However, consider the starting point of a simpler and less controversial approach is to use a cease-and-desist letter to the former employee.

What is a cease-and-desist letter?  It basically demands that the unlawful and inappropriate conduct stop immediately, and outlines consequences if it does not.  It is a quick and simple method to deter such inappropriate conduct.  It also creates a record of the company’s objection, aids in helping the company prove damages, and in some cases may resolve the matter without litigation.

In spite of the simple and potentially effective nature of such cease-and-desist letters, the employer must have an appropriate and lawful reason for sending such letters.  If there is no legal basis for the employer’s letter, this strategy may backfire.

The letters should also directly address what the employer wants done.  The letter might also include a deadline for responding and/or open the door for communications between the parties.  Care should also be taken in that the former employees receiving the cease-and-desist letter may make a public issue of them as well, potentially creating adverse publicity.  The company should exercise caution in drafting such letters so that they sound reasonable in light of the circumstances indicated.  

If the cease-and-desist letter does not generate an appropriate reaction by the receiving former employee, the employer can then consider whether litigation is necessary, and the costs and benefits of such litigation, including whether the employer can show actual damages.  Sometimes such letters at least open the door to a settlement that might meet the employer’s needs.  In at least one incident, however, the Federal Trade Commission (FTC) found the employer’s use of threatening cease-and-desist letters to former employees could be an unfair trade practice.

This article is part of our October 2026 Newsletter. 

View the newsletter online

Download the newsletter as a PDF