While the word “racketeering” may conjure images of mobsters and gangsters, criminal organizations are not alone among those targeted for unlawful racketeering activities. The Racketeer Influenced and Corrupt Organizations Act (RICO) supports civil claims by private parties against individuals and entities engaged in fraudulent business dealings. Indeed, in recent years, businesses have used the RICO statute and its potent treble damages provision as another weapon in their fight against unfair competition and interference with their business affairs.

Recovering treble damages against a competitor has obvious appeal, however, employers seem to bring RICO claims less often than one might think. This article addresses reasons why employers should explore including RICO claims in restrictive covenant litigation.

The RICO Statute and Its Elements