• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

taking former employer's business

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

A

agreenerimage

Guest
What is the name of your state? Arizona
I run my own business. Some of my former employer's customers have come to me, wanting to switch to my company. Can my former employer sue me if I take away any of his business? I wouldn't think so, being that I no longer work for him, but I know he'll try! Please help! Thanks!
 


AmosMoses

Member
Did you sign any sort of no-compete contract with him prior to going to work for him stating that you would not do this?
 
A

agreenerimage

Guest
I have no idea if I signed anything like that. I know that the contracts that my former employer draws up with his accounts say that they may not hire anyone that presently works for his company for at least 18 months after cancellation of service. But I no longer work for him. What happens if I did sign what you were referring to? I think I signed something that said I wouldn't work for his competition as long as I was employed by him, but I think that's it.
 
A

agreenerimage

Guest
I just re-read what exactly you were asking. I don't think I signed anything that specifically said that. So never mind my question about what happens if I did sign that! I think that's pretty obvious what would happen!:)
 

AmosMoses

Member
ag,

If your employer had the forethought to include clauses in his contracts with his "accounts" (I assume you mean his customers), then I would really presume that he would have gotten you to sign a no-compete contract...just my thinking, anyway, because if he is putting any sort of constraints on his customers, who could well tell him to shove the contract, then he would most surely do it with potential employees. I believe that what you slightly recall signing was more than likely this, and it could very well leave you open to legal action from him. Judging by your post, I think that your ex-boss is the type to really jump on this, too, so I would check with a local lawyer that specializes in this area of the law. Your new company...is it incorporated, or is a small mom and pop type of service company that you did not feel the need to incorporate? If not, maybe it would be best for you to discuss this with a lawyer who practices in this area, and ask him about the competition problem, too. Two birds with one stone. You need to incorporate or form a limited liability corporation so that you could only be sued for the assets of the company, anyway. Also, maybe you could work something out to have your spouse (or brother, sister, GOOD friend, etc., anyone you really trust) be the legal owner for now, and switch over to you if you feel like it after the time limit is up (if applicable). A lot of your options are going to depend on exactly what, if anything, you signed, and everything up until you really know what this exactly is will be pure speculation anyway, but I thought maybe this may give you some idea of the potential problems and solutions that you may encounter and can explore for now. This is overly simplified, and pulled from my head, but what I am getting at is that I do think that you may very well be opening yourself up to liability by doing this, at least enough to advise you to check with a lawyer on this. Best of luck with this problem, and it is probably wise on your part to be cautious of your ex-boss.
 

cbg

I'm a Northern Girl
Just curious, and it might affect the answer - how long ago did you cease working for him?
 

AmosMoses

Member
I don't know what, if any, "maximum" time is allowed to sign any agreement to avoid competing with any former employer, but maybe, just maybe, your ex-boss used the same time limit on your contract that he uses on his accounts/customers (if you did in fact sign one). If so, you are halfway there already. I think that you are going to need to see about getting a copy of whatever you signed when you first went to work for him, but how to do it without raising your ex-boss's eyebrows, I don't know. If he doesn't even know that you are in business now, much less razooing his customers, there's no need in giving him a heads-up on that! Good luck.
 

cbg

I'm a Northern Girl
Depending on your state, it MAY be that even if you did sign a non-compete agreement, it is no longer valid. In my state, anything more than six months to a year is generally the maximum the state will enforce. While I have personal experience with this issue in only a few states, of those states where I do have experience the longest period enforceable is one year. Talk to a local attorney to find out what your state supports.
 
A

agreenerimage

Guest
I know one of his managers know I have my own business, but I never let them know just how serious I am about it. I made it sound like I started doing it on the side just to get by. (I only let them know because they were asking me to come back to work for them shortly after I left, and I didn't want to appear deceitful if I did do any more work for them.) Now I have a very established business, with a pretty decent client base. My assistant received a suspicious phone call yesterday, that sounded like it may be someone from my old company trying to find out who my clients are, to see if any of them are their former clients. Anyway, I know someone else who used to work for them, who will know exactly what I signed when I was hired by them. She's on my side, so I'll be giving her a call to get further info. Thanks to both of you for your help!
 
F

fieldtech03

Guest
It is a shame you don't have a copy of the 'non-compete' agreement you might have signed - some employers like to draw them up themselves and end up with utterly unenforceable contracts.

Check on the laws regarding such agreements in AZ, in some states any such agreement has to be so specific as to be essentially worthless (time and distance requirements may have to be included, as well as VERY specific definitions of the nature of 'competition')

That being said, the type of employer who drools over non-compete agreements and makes suspicious calls to former employees is probably the type to try and nail someone to the wall over such an agreement. Best of luck!
 
S

scobie

Guest
common sense?

I am no attorney but I do believe in common sense of alot of things. I think common sense would say that if his clients came to you instead of him, knowing that they signed this agreement, they would be at fault for breach of contract.
Common sense would also ask, why would you want to turn away clients just because they used to be his clients. I am sure he got started some way. Probably the same way you did. If a company provides a good quality service, that is what would bring in and retain loyal clients.


This is just my opinion!
 
A

agreenerimage

Guest
Yes! Thank you! I have not gone out pitching to his current customers. THEY have contacted ME. I'm sure he doesn't know this though, nor does he care. He always feels that the world is out to get him. Nothing may even come of this, but after the suspicious phone call, I've been a little on edge, and just want to protect myself. I'm a growing business, and am not going to turn down customers just because they're with him. Thank you for your insight!;)
 

cbg

I'm a Northern Girl
While I agree that you most likely have very little to worry about, just remember that common sense and the law do not always go together.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top