Is it illegal to steal a former employers customers? Or just unethical?

Question

I know someone who is a trainer at a gym. She is considering quitting and starting her own personal training service and using the customer list from the gym to contact the customers she has a relationship with to start her business. What do you think?

Answer 1

Yes, it is unethical, but whether it's illegal depends on what kind of employee policies and/or signed agreements with the gym that currently employs her. Many companies state in their employee handbook or policy book (which employees usually sign that they have read and agree with the policies), that it is illegal to steal current customers of that company.

When I worked for a 1031 exchange company, I signed all types of agreements that I would not start my own company of similar interest and obtain clientele from their organization.

If there are no such agreement made between your friend and the gym, she is free to take those customers away, not to say that karma won't come back years later to bite her in the rear, but if she did not sign anything, she can start her own business.

But be warned that if she goes ahead without checking and it turns out the gym she currently works for can provide solid evidence to a judge that she violated those terms of employment, she can be sued.

Answer 2

I would say it depends on a few things.

First, did she sign any agreement with the gym regarding non-competition if she leaves? Another thing to remember is that many gyms treat personal trainers as independent contractrors, so she may have a contract that is worth review.

Lastly, where is customer data retained? If it is on a PC owned by the gym, for example, they generally would have ownership if this information. Extracting that information would probably not be ethical.

Does she maintain relationships with customers outside the gym? Does she have a current client list?

Answer 3

If she takes her customer list from her former employer she could get in trouble for it. Since that list is the property of the gym in question. If she merely mention to the customers that she was leaving and starting her own practice then the customer would be able to decide wether they wanted to stay where they are our go somewhere else.

Answer 4

It's unethical but not illegal. I could understand if where she works they treat her badly, but if she got a good job and is just doing this for her own reasons, then she should think about it before she screws her former employer. Just pay for some ads in the paper, or a radio spot (they aren't too expensive).

Answer 5

I think if she took the list, it will be stealing. But if she know her customers without taking the list, it will be just unethical or who cares?

Answer 6

Free enterprise! Just ask yourself "What would Donald Trump do?" Business ethics is a grey area. Those who play by all the rules usually get beaten out by the ones who know how to get away with breaking the rules. I'm not condoning unfair business practices, but in real life, ethics loses out to the bottom line.

Answer 7

The lady who cuts my hair recently left the salon she worked at to open her own. When I called to make an appt. the receptionist told me and gave me her forwarding number.
Had she called me, I think that would have been ok too.
If she has been talking to other stylist's customers, that would be unethical.

Answer 8

She may have signed something when she was employed that stated that she wouldn't compete with them if she ever left. If she did then it would be illegal for her to steal there customers.

Answer 9

THE ONLY WAY IT IS ILLEGAL IS IF THAT PERSON SIGNED A NON COMPETE WAIVER.
IMMORAL OR UNETHICAL. I SAY ALL'S FAIR IN BUSINESS AND WAR.

Answer 10

if she can swing it, good for her! if her current employer is providing a good service to it's customers, she'll have a hard time doing so