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Employee taking a job at a competitor
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Employee taking a job at a competitor
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
We recently had a manager terminate employment and take a management position at a competitor. We are worried she may also take some of our valuable clients with her. Is there any way to guard against
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Forums » Topic Forums » Legal Forum » Employee taking a job at a competitor
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Employee taking a job at a competitor
posted at 7/14/1999 1:29 AM EDT
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Posts: 12
First: 6/15/1999 Last: 9/21/1999 |
We recently had a manager terminate employment and take a management position at a competitor. We are worried she may also take some of our valuable clients with her. Is there any way to guard against that. |
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Employee taking a job at a competitor
posted at 7/14/1999 2:26 AM EDT
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Posts: 833
First: 6/11/1999 Last: 8/23/2001 |
Through a non-compete agreement, but it seems to be too late for that.
You may have recourse if the former employee took physical data, or lists, etc or furnished your competitor with proprietary information, such as your processes, etc. but how do you prove that? Customer listings and clientele aren't generally considered "trade secrets". |
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Employee taking a job at a competitor
posted at 7/14/1999 6:08 PM EDT
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Posts: 2217
First: 6/16/1999 Last: 12/13/2001 |
Well, to a certain extent, asking this question now is a bit like trying to close the barn door after the horse is out. Employer's are wise to make sure that employees in key positions are aware of the company policies regarding confidential information. If you do not have one, you should get one. If you have really important employees, you might want to enter into employment agreements which specifically provide that the employee will not compete for a designated period of time.
Even if you do not have any such policies, under many state's common law (judge made rules), an employee owed a duty of loyalty to his or her employer. If you can show that the employee was making plans to leave while working for you (i.e., was gathering the rolodex and files on the last day of work), you might get a court to enjoin the employee from stealing your clients. It all depends on state law. If you think it important to stop this from happening, you should probably take prompt action. Courts will be reluctant to grant an injunction (an court enforced order not to do a certain thing) if you delay in taking action to prevent the injury. I recommend you consult with your favorite labor and employment relations attorney, If you need a referral in your area, drop my a note and I would be happy to help. Matthew T. Miklave Epstein Becker & Green, P.C. 250 Park Avenue New York, New York 10177 (212) 351-4663 (212) 661-0989 (fax) MMiklave@ebglaw.com |
Forums » Topic Forums » Legal Forum » Employee taking a job at a competitor
