Legal Question in Business Law in California

Conflict of Interest.

In state of California can an employee's Father in Law (or any other relative for say) can open similar business? Further expanding the question, '' I work for a company that does wholesale business of tiles, can my father in law open a similar buiness in same state which is California and not cause conflict of interest?.

My employer has put in the employee handbook policy that an employee of their relative cannot have the same business. Is it legal?


Asked on 8/16/07, 12:32 am

1 Answer from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

Re: Conflict of Interest.

There is no law against opening a business which competes against a family member's employer. At the same time, there is no law that requires businesses to hire -- or to retain -- employees who are related to competitors. The fact that the relative has broken no law will not prevent the employer from enforcing such a policy.

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Answered on 8/16/07, 2:36 pm


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