Legal Question in Business Law in California

Re: Employment and client

you can take action only if your employee is under any legal bondage that he works for certain fixed period of time and which he breaks before the bondage is completed and such bondage should be under legal facade.

Re: Employment and client

Stealing your client is illegal per the Uniform Trade Secrets Act. Perhaps you may enjoin the client in California and get a default judgment against the employee in India. Contact me directly.

Re: Employment and client

I respectfully disagree with everyone, at least as the the certainty of their positions, on almost everything they've said.

If California law applies - and it may not - the employee is free to leave your employment and compete directly with you. Any contract to the contrary is void and unenforceable as contrary to public policy in California.

In sharp distinction to the policy encouraging competition, formation of new business, employee mobility, etc., California does subscribe to the Uniform Trade Secrets Act and punishes or awards damages for misappropriation of trade secrets, which may include knowledge of client needs and requirements.

The balancing point between the possibly-conflicting policies of worker mobility and protection of the secrets of a former employer is sometimes difficult to pinpoint. This former employee certainly has the right to go to work in competition with you, but in these circumstances it is moderately likely that he is capitalizing on some misappropriated trade secret, such as code he wrote while being paid by you. On the other hand, general technical know-how he developed while working for you is not likely to be your trade secret.

It may be helpful to progress this as a Trade Secrets Act violation, but you need to be clear as to what secrets are being mis-used. Merely going into competition is protected and insufficient for a legal challenge.

Re: Employment and client

If there is any valid contract(agreement)with the employee to that respect then you can take action

Re: Employment and client

You may take appropriate legal action as per the contract between you and your former employee.