Employment Agreement

[Bob Julio]

What is the name of your state? California

I am considering opening my own business. However, I signed an employment agreement with my current employer when first hired (over 2 years ago) which states:

During my employment with XYZ (fictitious), I will not directly or indirectly or by aid of others, do anything which would divert from XYZ any business with any customer with whom I had contact or association. In the event of resignation or termination, for a period of one year thereafter, I will not contact directly, or indirectly through others, any client or customer of XYZ or any other party whose identity as a potential client was confidential or learned by my employment with XYZ.

How much exposure do I have in contacting clients that have already stated that they would want to be my clients in the event that I open my own business?

 

[cbg]

I could be mistaken, but I believe that California law frowns on non-competes. Your best bet would be to show the agreement to a California attorney; I cannot tell you for certain but I believe you will find that the agreement is unenforceable.

IAAL, can you confirm?

 

[I AM ALWAYS LIABLE]

I could be mistaken, but I believe that California law frowns on non-competes. Your best bet would be to show the agreement to a California attorney; I cannot tell you for certain but I believe you will find that the agreement is unenforceable.

IAAL, can you confirm?

My response:

While it is true that non-compete agreements are unenforceable in California, our writer's situation and question has nothing to do with a non-compete agreement. Our writer has not stated that he signed an "agreement" that would keep him from starting his own similar business.

Our writer's situation has to do with "customer lists" and "customer fishing". Such customer lists are fully protectible, and are considered "trade secrets"; i.e., but for our writer's employment, our writer would not know who is, and who isn't, interested in the services or products that his employer services or sells. Also, such customers are generally not ascertainable without the expenditure of vast sums of money on advertising, or weeding through numerous non-interested customers.

If I were the writer, I would not solicit any customers known to him to be the customers of his current employer. I would also refuse to do business with any current customers of the employer even if they sought me out - - at least for 1 year.

No matter how honorable or honest our writer might be, the onus would be on him to prove that he didn't "customer fish", and the expense of litigation would put him out of business just as fast as he started doing business.

Wait for one year to expire.

IAAL

 

[cbg]

Thank you. That's why I try to stay away from any detailed responses on contract questions.

BTW, IAAL - I changed my hair; I'm a redhead now.

 

[I AM ALWAYS LIABLE]

BTW, IAAL - I changed my hair; I'm a redhead now.

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My response:

Changed your hair? Strand, by strand? Hair, by hair?

That's terrific news. Another sexy woman!

Because of my love of redheads, and my influence in that regard, do you know how many contributors and writers have changed their hair color to red in the last 3 1/2 years?

IAAL

 

[cbg]

Probably quite a few. How many?

 

[Beth3]

JETX, Home Guru, hexeliebe...

 

[I AM ALWAYS LIABLE]

Probably quite a few. How many?

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My response:

I don't know. I was asking you!

Cute, Beth. Very cute.

IAAL

 

[Beth3]

 

[cbg]

Since the only responder or contributor to this board that I've met in person is Beth, who's a blonde, I don't know either. But maybe I'll start a trend!

 

[jimnyc]

Didn't know this board had sexy redheads and blondes posting. Pictures please