New Business Limitations

[Murph]

I am currently in the process of forming a partnership and new business with two other individuals. All three of us are current or former employees of a company in the same field as our new business. At the onset of our employment, we were not asked to sign any forms stating that we would not leave and start a new business with similar products and services. Will our former employer have any legal leverage to interfere with the new business, even if we are not in direct competition?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Murph:
I am currently in the process of forming a partnership and new business with two other individuals. All three of us are current or former employees of a company in the same field as our new business. At the onset of our employment, we were not asked to sign any forms stating that we would not leave and start a new business with similar products and services. Will our former employer have any legal leverage to interfere with the new business, even if we are not in direct competition?<HR></BLOCKQUOTE>


My response:

Do you see that writing in RED, above? Without a State name, we can't even attempt to assist you, if we're even able to assist you at all. Laws are different everywhere.

IAAL



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[I AM ALWAYS LIABLE]

My response (friendly "Responder")

Okay, you're in California, and that's a good thing. That's where I practice.

Anyway, if your employer did not have you sign a "Non-Competition" agreement or covenant within your employment application, then you're doing just fine. As a matter of fact, even if he did have you sign such an agreement, California, as opposed to other States, takes a very dim and narrow view of such agreements and will only enforce them under strict and narrow guidelines. Because California is a "right to work" State, most of these types of agreements are so restrictive that California courts have been known to invalidate such agreements, time and time again.

See, it was very advantagious for you to tell me your State, wasn't it?

Good luck to you and much success.

IAAL

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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."