I was basically given Ops Mgr responsibilities, but did not get title for 10 months later (only after I was no longer pregnant :) - I do not think I have ever signed a non-compete clause. Have been with company for almost 4 years - (but the company has been bought out twice since that time) - Never got a pay increase with title, and in 4 years have only made .50 more (even going to the position of Operations Manager) - Am thinking about starting own company - current customers would like for myself to continue to provide services - would there be any concern for legal actions taken against me?
If a non compete clause HAS NOT been signed - could there be ANY recourse for the company - or is it pretty much their loss?
2006-10-09 15:04:16 · 6 answers · asked by Tara J 1 in Politics & Government ➔ Law & Ethics
If you have access to trade secrets and/or customer lists of your old employer and are starting a business that uses either to the detriment of your old employer, it is possible that they could sue you, even without a non compete.
What state this is in is critical - the law varies tremendously from state to state.
2006-10-09 16:59:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I am an attorney in California. The laws on this type of thing vary by state, so you really need to consult an attorney in your state. I will explain the law in California.
Noncompete clauses are difficult to enforce, at least in California. They are enforceable during employment and in conjunction with the sale of a business, but that is it. You can leave your job at anytime and open your own competing.
During your time of employment, you do owe your employer a duty of loyalty. That means you cannot talk to your employer's customers about leaving and forming your new company. You can PREPARE to compete while still working for your current employer (i.e. signing a new lease, getting letterhead and business cards, etc.), but you cannot solicit customers while still working there. You canno take anything with you like a rolodex.
I hope this helps. Contact a local attorney for more information.
2006-10-09 15:39:09 · answer #2 · answered by Carl 7 · 0⤊ 0⤋
Your non-compete clause should not be FOREVER, it is usually a specified amount of time. Get your non-compete out and read the details. If it specifies forever you need to get some legal help. Even in contract an employer can not bind you to unreasonable right to earn money. They can specify like a year but it would never hold up to stop you forever. AND usually there is a mile limit to the contract also. Read it first and give more details about it.
2016-03-28 03:16:53 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Without a noncompete, they can sue you just to burden you with legal fees. If you are in a right to work state, you'll be in good shape.
Alternatively, they might try to claim you breached some fiduciary duty to the company ...but being a manager usually doesn't create such a duty.
Finally, they might claim that you are tortiously interfering with their client contracts....Again, just a way to rack up legal fees. America was built on competition.
Good luck!
2006-10-09 15:07:37 · answer #4 · answered by Brand X 6 · 0⤊ 0⤋
If you didn't sign one, there is no issue. There is no cause of action on their part unless you purposely steal customers by inducing them to breach contracts already executed with the former employer.
2006-10-09 15:08:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋
If no clause has been signed then I say best of luck. competition is a wonderful thing and i welcome it.
2006-10-09 15:08:15 · answer #6 · answered by Anonymous · 0⤊ 0⤋