Legal Question in Business Law in California

Re: Pre Employment Agreement

The provision about not working for another recruiting firm is probably not enforceable. It would run afoul of Business and Professions Code Section 16600 that declares any contract which restrains someone from engaging in any lawful business, trade or occupation to be against public policy and therefore void to the extent of the restriction.

Parallel to this, seemingly in conflict, but generally distinguishable by a careful reading of the cases in this area, is the policy (and statutes) prohibiting the misappropriation of trade secrets. A list of clientele of a temp agency can be a trade secret, so that if a former employee of temp agency 1 leaves and goes to work for, or starts, temp agency 2, and uses her old boss's snitched Rolodex (or the modern equivalent, a computer file), this is probably an illegal misappropriation.

How do you draw the line, or figure out the difference, between fair going-into-competition, on the one hand, and illegal trade-secret snatching, on the other? Well, this is why lawyers go to law school and have those enormous libraries. The answers are maybe in there - or maybe we have to compare prior cases, existing statutes and situation-specific facts and render an opinion, with the ever-present qualifications, as to whether the proposed new business is safe or risky.

As to whether you can be sued - this question always breaks down into two sub-questions. The answer to the basic question as to whether you can be sued is "Probably, yes." All it takes is the filing fee and a willingness to dictate a complaint to an equally eager lawyer. The second question is "Will the plaintiff win?" Without knowing more specifics, I'd say this is a 50-50 proposition. Narrowing down the odds requires the aforementioned research and application of wisdom.

In your favor, I'd say California has a pretty strong preference for letting former employees compete. Against you, the opportunity to misappropriate trade secrets in employment-agency cases seems higher than in many other industries.

Re: Pre Employment Agreement

There are limitations on noncompete agreements, but I would have to look at details.

Best,

Daniel Bakondi, Esq.

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Re: Pre Employment Agreement

There are several issues involved with your question that relate to non-compete agreements, trade secrets, customer lists, etc.

I think you need to have a consultation with a local attorney to discuss you options as you risk a lawsuit if you are not aware of your rights AND obligations.

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