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Starting own business related to current employer legal questions
Posted on 10/11/16 at 1:21 pm
Posted on 10/11/16 at 1:21 pm
My wife is looking to leave her current employer to start her own business to fill a niche in the same field. She's not looking to take any business immediately from her current employer, but it is the same business. She has not signed a non-compete and from what she can remember has never signed anything, but her owner now is very sue happy. One of the reasons she wants to leave, he burns a lot of bridges and is always involved in legal issues. This is in Florida.
I don't think we have anything to worry about, but are there any legal safety measures to take when going out on your own to compete with your current employer?
I don't think we have anything to worry about, but are there any legal safety measures to take when going out on your own to compete with your current employer?
2
Posted on 10/11/16 at 1:50 pm to baldona
Only complication I can think of is if you get found out you can be fired which I've seen happen.
I've seen people sue just to sue and be petty. So you might deal with that after the fact.
I've seen people sue just to sue and be petty. So you might deal with that after the fact.
Posted on 10/11/16 at 2:34 pm to BeerMoney
She could certainly be sued. She maybe would win, but it could happen and you have to deal with that. That's not a reason to stay, but just something to prepare for.
If there is not a non-compete, that is good, but there is still the issue of intellectual property. She needs to make sure she doesn't walk out with any propritary worksheets, methods, and client lists. This could be what the former boss could try to sue about.
We are dealing with a somewhat similar situation right now. We had a manager leave to go to another firm. She took her clients that she brought with her - that's to be expected. She's also been contacting clients of the firm that were not ones she has brought in, which has caused some issues. But our partners never made her sign anything, so while they are mad, not much they can do.
But bridges have been burned.
If there is not a non-compete, that is good, but there is still the issue of intellectual property. She needs to make sure she doesn't walk out with any propritary worksheets, methods, and client lists. This could be what the former boss could try to sue about.
We are dealing with a somewhat similar situation right now. We had a manager leave to go to another firm. She took her clients that she brought with her - that's to be expected. She's also been contacting clients of the firm that were not ones she has brought in, which has caused some issues. But our partners never made her sign anything, so while they are mad, not much they can do.
But bridges have been burned.
Posted on 10/11/16 at 4:23 pm to baldona
I've been on both sides here--once I was the employee leaving and now I'm the employer doing the hiring.
Big lesson for everyone--always get a copy of your employee file.
My suggestion to you and your wife--tell her employer or better yet, get your financial advisor or your cpa to request her employee file as you are doing some estate/insurance planning and he would like to review the full file.
If this guy is invloved in legal issues currently, you want those to remain his legal issues and not yours.
Big lesson for everyone--always get a copy of your employee file.
My suggestion to you and your wife--tell her employer or better yet, get your financial advisor or your cpa to request her employee file as you are doing some estate/insurance planning and he would like to review the full file.
If this guy is invloved in legal issues currently, you want those to remain his legal issues and not yours.
Posted on 10/11/16 at 4:57 pm to LSUFanHouston
quote:
She could certainly be sued. She maybe would win, but it could happen and you have to deal with that. That's not a reason to stay, but just something to prepare for.
If there is not a non-compete, that is good, but there is still the issue of intellectual property. She needs to make sure she doesn't walk out with any propritary worksheets, methods, and client lists. This could be what the former boss could try to sue about.
From what my lawyer friend has told me(his specialty is employment law) non-competes are very hard to enforce in court, but people get into trouble by taking proprietary info with them when they leave.
Posted on 10/11/16 at 8:16 pm to The Spleen
Its a small company, maybe 30 employees. They really don't have any formal policies as far as even termination and what not. There's basically no HR handbook, they do have a payroll company that does their payroll and what not but I don't think that applies. If this was a fortune 500 with HR out the wazoo it would probably be easier. She's not looking to take anything with her and in the first year at least not planning on going after any current clients or customers. She has a niche she wants to pursue on her own that her current employer barely covers. We are not trying to screw the current employer at all or steal anything including intellectual property.
We have savings for her to be unemployed/ not bringing in income for awhile, my main concern is being tied up in court or legal expenses. I don't expect any of either, but again the guy likes to sue so I'm trying to figure out if we should talk to a lawyer first to cover our bases.
We have savings for her to be unemployed/ not bringing in income for awhile, my main concern is being tied up in court or legal expenses. I don't expect any of either, but again the guy likes to sue so I'm trying to figure out if we should talk to a lawyer first to cover our bases.
Posted on 10/12/16 at 3:58 pm to baldona
quote:
trying to figure out if we should talk to a lawyer first to cover our bases.
Always this. Is she currently employed by him but making plans for her own company? She should quit ahead of time, and then work on her own company. She needs to watch emails so she isn't being paid by him, yet working on a competing entity.
If there is no non-compete or non-solicitation she is in a good spot, but anyone can sue for any reason and make it a headache.
100% meet with an attorney even for 30 minutes to an hour, and let him ask all these questions that you may not have thought of before making a single move. Better to do this as cleanly as possible to prevent a lawsuit.
Posted on 10/13/16 at 7:45 am to The Spleen
quote:hehe. Must be a busy guy with all of that employment law.
his specialty is employment law
This is America. Take all the info you can and go make it happen. You can't lose a lawsuit for starting a business in your field of expertise.
This post was edited on 10/13/16 at 7:46 am
Posted on 10/13/16 at 11:05 am to wolfonthebayou
quote:
You can't lose a lawsuit for starting a business in your field of expertise.
I'm not worried about losing the lawsuit as much as the time, money, and effort spent on dealing with it. More importantly, if it is possible to prevent her from working for awhile until it is settled. None of this I expect, just trying to prevent as much as possible.
She is not doing anything wrong, if anything she is overly trying to not "take" any business. Again she's pursuing a Niche in her field that her current company does not, while her current company could pursue that niche it would require a change in focus that would not make sense for them being so big.
I'm just trying to help her cover her basis so when she is ready to leave and go out on her own, she has as little to worry about as possible.
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