Legal Question in Business Law in New York

starting my own business and taking clients from the job i am now. Where do I st

I have worked for a company for numerous years. I have started my own business part-time.. What are the legal ramifications of taking clients that are already with the job I have at this job now!! Is this just competition.. or could they sue me for taking business away from them...???


Asked on 12/02/00, 8:01 am

1 Answer from Attorneys

Norman Nadel Norman Nadel, Esq.

Re: starting my own business and taking clients from the job i am now. Where do

The law recognizes that your employer has property rights in your customer lists, etc. This generally applies even if the business you plan to enter into involves a different product line.

While you work for an employer you can be prevented from taking (injunctive relief) customers and can be held personally responsible to pay damages to your employer for the revenue loss resulting from diverting customers from him to you.

After you terminate your employment, you can advise customers of your departure and seek their business and if they choose to give orders to you, that's OK.

The general rule is that you owe loyalty to your employer and while he is paying your salary you can't take his property rights. Once you leave the employment then there is competition.

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Answered on 12/04/00, 9:19 am


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