Legal Question in Employment Law in California
Can my employer sue me for competition?
I currently work as a field help desk engineer for a small company specializing in B2B IT services. I am underpaid, and while I have brought this to the owner's attention, and even substantially increased the revenue of the department through billable hours, no leveling of my salary has occurred. At the beginning of the employment, I signed a non-competitive agreement, so I cannot ''moonlight''. I am about to give my two weeks notice, and work as independent contractor for some of the same customers, who actually prefer to work with me than my employeer. I am attempting to offer a better deal, money wise, to those businesses, but I am worried if my employeer can sue me under the pretenses of that contract. I did not learn my profession or gained the experience while working for him. What would you advice please?
3 Answers from Attorneys
Re: Can my employer sue me for competition?
Can he sue you? Of course. Whether he could win is something you need to discuss with experienced counsel. You also need to become educated on what you can and can not do to solicit business or work at a competitor/customer. Contact me if interested in doing this right.
Re: Can my employer sue me for competition?
Generally speaking, noncompete agreements in California are not enforceable. However, there's a big difference between "noncompete" agreements and "confidential information" agreements. Before you quit your job and contact customers for their business, it would be advisable for you to sit down with an attorney to review the agreement you signed, evaluate how you plan on approaching your new business and customers, and make sure you don't violate any common-law duties regarding confidential information owed to your former employer.
Re: Can my employer sue me for competition?
Under California law, your employer cannot prevent you from working in your chosen field after you resign - either for yourself or someone else. However, if you plan to service the same customers, you may have a problem. Your employer CAN sue you for misappropriation of trade secrets or intentional interference with economic advantage if you actively solicit their customers and in turn damage their business. Trade secrets could include customer lists and contact information in addition to business practices and methods used by your employer. Intentional interference with economic advantage could come in if you actively solicit clients away from them. You need to show the agreement to an attorney and get some professional advice on how to handle this situation if you are serious about leaving the company and going forward on your own. No attorney can guarantee that your employer won't still sue you under the agreement, which could cause you some headaches even if it is not enforceable. If you would like to discuss this further, please contact our office directly. Thanks -
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