Legal Question in Employment Law in California

Legal Ramifications of Starting My Own Business

I was recently fired for starting my own business because of information that my employer had received from an associate.I had started planning and investigating this option by discussing and supplying information to several longtime trusted associates who were interesting in finding out more information about possible options we may have in the future when we all left either outside representitive positions or direct employment in my case. Apparently one of the associates was strong armed by the company to supply our e-mail corrospondences over several months time prior to termination. These corrospondences included possible plans for the future and proposed pricing structure of the product. This product would be in direct competition with the past employer. I never actively solicated any of there customers and only tried to stabalize the horrible

While I realize they certainly did have the right to terminate me. I was forced to investigate this business venture due to there collapse and no available jobs within the market place.

Thanks for your advice..........:)


Asked on 2/06/03, 5:03 am

1 Answer from Attorneys
Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: Legal Ramifications of Starting My Own Business

I'm not quite sure what your question is. Employees have a duty of loyalty owed to their employers, which means that they cannot undertake any activity contrary to the business interests of their employer. If your activities detracted from your responsibilities with the employer, and were designed to form a company in competition with the employer, they certainly had good cause to terminate your employment. Their fear, whether justified or not, was that you could use information acquired through your services with them for your benefit and against theirs.

You also have a legal obligation to not use trade secrets in your next business venture. Trade secrets include information that is truly unique to your former employer, that no one outside the company would know. Information accessible to all within the industry is not a trade secret.

If you had a specific question in mind, please let me know.

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Answered on 2/07/03, 2:30 pm


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