Legal Question in Employment Law in California
Conflict between new employer and old
The background for these questions is
as follows. I worked for a company for 2
years. I recently resigned and got a job
shortly after in a company that offers a
different service than that of my first
employer. The questions are as follows.
1. Throughout the course of my 2-year
employment in the first company I
acquired a lot of business cards and
contact information for clients.
Although the new company I work for
does not offer the same service, I am
able to use these contacts to sell my
new product. Do these business cards
belong to the first company or me? Am I
aloud to keep them or photocopy them
for my records?
2. The last question is about the rights
that I may have to sue the initial
company. After I resigned, they
contacted me new employer, and in an
attempt to ruin my reputation with my
new company, they made false
accusations and statements about me.
Furthermore, they also contact my old
clients slandering my name and
reputation. What action can I take
against them?
2 Answers from Attorneys
Re: Conflict between new employer and old
You could mine the info from the cards and use it as long as it doesn't constiture 'unfair competition'. Handled correctly, you should be ok.
Slander and attempts to interfere with your employment are claims you could make if you can prove that through witnesses. If that cost you financially, like losing your job, the case might have some value.
Re: Conflict between new employer and old
Under certain circumstances, the names and information of customers acquired through employment may be considered a trade secret and belong to the employer. But the courts apply the law very strictly, because many factors must be considered in order for the information to be a true trade secret in the eyes of the law. It may be best to run the facts by a lawyer before you attempt to solicit business, especially if you signed a trade secret agreement.
Generally speaking, it is safer to simply send out announcements to the clients, telling them where you are and what you do, and leave it to them to decide if they want to do business with you. If the product does not compete with the former employer, they cannot claim you harmed them. Under no circumstances, should you say anything negative about the former employer.
Most lawyers will send out a cease and desist letter before filing a lawsuit for defamation or related actions. However, if you've been monetarily harmed, you could also run those facts by a lawyer to seek if it's worth the time and expense of a lawsuit.
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