What to do if…
you receive a legal letter from your employer alleging a breach of contract

What to do now

1. Save the letter and record when it arrived.
   Make a PDF or clear photos of every page, including attachments and the envelope if it came by mail. Write down the date and time you received it and every deadline listed.

2. Check whether it is only a demand letter or actual case papers.
   Look for words such as “demand”, “cease and desist”, “notice of intent”, “arbitration demand”, “summons”, “complaint”, “petition”, or “injunction”. Court papers and arbitration demands need faster action than an ordinary demand letter.

3. Verify the sender without discussing the facts.
   If it says it came from a law firm, check the firm’s official website or a bar directory before calling or emailing. If you need to confirm receipt, keep it neutral and do not explain your side.

4. Pause the conduct they say is a breach.
   This may mean stopping contact with named clients, stopping use of company materials, not accessing old company systems, not sharing information, or pausing competitor-related work that the letter specifically challenges. Preserve records; do not delete them.

5. Gather the documents your lawyer will need.
   Save your offer letter, employment agreement, contractor agreement if any, handbook acknowledgements, noncompete terms, nonsolicitation terms, confidentiality terms, IP terms, bonus or repayment terms, separation documents, and the communications the letter refers to.

6. Make a simple timeline.
   List the key dates: when you signed agreements, when employment started and ended, when the alleged events happened, when you received the letter, and any deadline in the letter. Keep it factual and private.

7. If company data may be on a personal device or account, stop touching it.
   Do not open, forward, copy, upload, wipe, or return it on your own. Ask a lawyer how to handle return or preservation without making the dispute worse or looking like records were changed.

8. Flag any arbitration, venue, or choice-of-law clause.
   Many agreements say where a dispute must be handled, whether arbitration is required, and which state’s law may apply. Send those clauses to your lawyer with the letter.

9. Do not assume a federal noncompete rule cancels the letter.
   The FTC Noncompete Rule is not currently in effect or enforceable. Noncompete and nonsolicitation issues can still depend on state law, contract wording, dates, role, and facts, so get advice before ignoring the letter.

10. Get help that can act in the right place.
    If you are in a union, contact your union representative or union legal service. Otherwise, contact an employment lawyer who handles contract disputes in the relevant state. If cost is a barrier, try a state or local bar lawyer referral service, legal aid directory, law school clinic, or pro bono intake.

11. Use only a short holding message if you must respond before getting advice.
    Say you received the letter, you are seeking legal advice, and you request a reasonable extension. Do not address the allegations, admit fault, offer payment, promise restrictions, or accuse anyone back.

12. Treat served court papers as urgent.
    In federal court, a defendant served with a summons and complaint usually must serve an answer within 21 days unless a different rule, waiver, motion, statute, or court order changes the deadline. State courts and arbitration can use different deadlines, so follow the papers and get legal help immediately.