Legal Question in Business Law in California
using a competitor employee as an independent contractor
Is it legal to use an employee of a competitor as an independent contractor for sales referrals?
2 Answers from Attorneys
Re: using a competitor employee as an independent contractor
It is not illegal but definitely unethical and can incur civil liability.
Re: using a competitor employee as an independent contractor
It's not "illegal" in the sense that it would be a crime, as far as I know at least. I can think of at least two rather sound grounds on which the parties might be sued civilly - unfair competition and misappropriation of trade secrets - and probably other grounds could be dreamed up by the injured employer's attorney. Whether there would be an award of money damages would depend upon proof of actual damages.
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